PetSmart
The 10-second takeaway
For the quarter ended Oct. 28 (Q3), PetSmart met expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue grew and GAAP earnings per share expanded significantly.
Margins grew across the board.
Revenue details
PetSmart chalked up revenue of $1.63 billion. The 20 analysts polled by S&P Capital IQ predicted sales of $1.62 billion on the same basis. GAAP reported sales were 8.8% higher than the prior-year quarter's $1.50 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS details
EPS came in at $0.75. The 23 earnings estimates compiled by S&P Capital IQ averaged $0.64 per share. GAAP EPS of $0.75 for Q3 were 50% higher than the prior-year quarter's $0.50 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
Margin details
For the quarter, gross margin was 29.6%, 100 basis points better than the prior-year quarter. Operating margin was 8.6%, 180 basis points better than the prior-year quarter. Net margin was 5.1%, 140 basis points better than the prior-year quarter.
Looking ahead
Next quarter's average estimate for revenue is $1.88 billion. On the bottom line, the average EPS estimate is $1.20.
Next year's average estimate for revenue is $6.75 billion. The average EPS estimate is $3.39.
Investor sentiment
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 706 members out of 755 rating the stock outperform, and 49 members rating it underperform. Among 275 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 265 give PetSmart a green thumbs-up, and 10 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on PetSmart is outperform, with an average price target of $73.63.
If you're invested in retailers like PetSmart, you should check out the concept that is The Motley Fool's top stock for 2012. Its founder wrote the book on big box retailing, and it's growing in increasingly important international markets. Click here for instant access to this free report.
- Add PetSmart to My Watchlist.