PetMed Express Profit Miss Estimates; Stock Down - Update

(RTTNews) - Pet pharmacy retailer PetMed Express Inc. (PETS), Monday reported an increase in second-quarter profit, helped by a four percent growth in sales and lower operating expenses, largely offset by a drop in gross margins. While quarterly earnings missed Wall Street estimates by a penny, revenues came in above expectations.

Investors were dismayed with the results, sending PetMed shares tumbling 9 percent on the Nasdaq.

PetMed Express is the largest pet pharmacy in the U.S., selling medications and other health products for dogs and cats.

The Pompano Beach, Florida-based company posted quarterly net earnings of $4.2 million or $0.21 per share, compared with $4 million or $0.20 per share last year.

On average, seven analysts polled by Thomson Reuters estimated earnings of $0.22 per share for the quarter. Analysts' estimates typically exclude special items.

Net sales for the quarter climbed to $60.5 million from $58 million a year ago. Analysts expected sales of $60.33 million for the quarter.

Reorder sales grew 5.3 percent and online sales were up 7.3 percent for the quarter, the company said.

Results were weighed down by cost of sales that climbed to $41.2 million from $38.8 million in the prior year, while operating expenses dropped to $12.7 million.

PetMed stock is trading at $15.32, down $1.54 or 9.13%, on a volume of 0.9 million shares.