The 10-second takeaway
For the quarter ended March 31 (Q4), PetMed Express beat expectations on revenues and earnings per share.
Compared to the prior-year quarter, revenue increased and GAAP earnings per share grew.
Margins shrank across the board.
PetMed Express booked revenue of $55.9 million. The six analysts polled by S&P Capital IQ expected to see sales of $52.2 million on the same basis. GAAP reported sales were 9.8% higher than the prior-year quarter's $50.9 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.20. The seven earnings estimates compiled by S&P Capital IQ anticipated $0.18 per share. GAAP EPS of $0.20 for Q4 were 11% higher than the prior-year quarter's $0.18 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 33.9%, 40 basis points worse than the prior-year quarter. Operating margin was 11.2%, 150 basis points worse than the prior-year quarter. Net margin was 7.1%, 100 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $75.3 million. On the bottom line, the average EPS estimate is $0.24.
Next year's average estimate for revenue is $239.5 million. The average EPS estimate is $0.77.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 859 members out of 888 rating the stock outperform, and 29 members rating it underperform. Among 210 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 201 give PetMed Express a green thumbs-up, and nine give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on PetMed Express is underperform, with an average price target of $11.
While many retailers continue to struggle in these tough economic times, a select few are changing the face of the business, and reaping outsize rewards. Is PetMed Express the right stock for you? Read "The Death of Wal-Mart: The Real Cash Kings Changing the Face of Retail" and decide. Click here for instant access to this free report.
- Add PetMed Express to My Watchlist.
Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
More from The Motley Fool
3 Unknown but Amazing Dividend Stocks
Despite floating under the radar, these are some seriously impressive yields.
Why DryShips, PetMed Express, and VF Corp. Jumped Today
Even as the market fell, these stocks gained ground. Find out why.
Why PetMed Express Inc Is Soaring Today
Traders cheer better-than-expected earnings.