), a specialty retailer of products, services and solutions for
pets, is expected to reveal its financial results for the
second-quarter of fiscal 2012 on Wednesday, August 15, 2012.
The current Zacks Consensus Estimate for the quarter stands at
65 cents per share, indicating an estimated year-over-year increase
of 20.4%. The estimate lies between a low of 63 cents to a high of
67 cents. The Zacks Consensus Revenue Estimate is pegged at $1,600
million for the second quarter.
Recap of the First Quarter
PetSmart posted strong first-quarter 2012 earnings of 85 cents
per share, reflecting a 39% rise from 61 cents delivered in the
year-ago quarter. Moreover, the reported earnings handily surpassed
the Zacks Consensus Estimate of 73 cents.
PetSmart's top line increased 9.4% year over year to $1,629.9
million, ahead of the Zacks Consensus Estimate of $1,599 million.
However, unfavorable foreign currency fluctuations negatively
impacted the sales by $2 million. Comparable-store sales increased
7.4% in the quarter, driven by 3.3% growth in comparable
(Read full report on earnings:
Strong 1Q for PetSmart
For the second quarter of 2012, the company expects comparable
store sales to increase in the mid-single-digits range, while
earnings per share are expected to be in the range of 61 - 65
Based on the impressive first quarter results, the company
raised its fiscal year guidance. Currently, PetSmart expects
earnings in the range of $3.19 - $3.31 per share, while
comparable-store sales are projected to increase in the
mid-single-digit range, with total sales growth of 9% - 10%.
Gross margin is expected to expand by 65 to 75 basis points.
Agreement of Estimate Revision
Due to lack of any positive or negative news affecting the
estimates directly or indirectly, all of the 22 analysts covering
the stock remained stagnant regarding their estimates for the
to-be-reported quarter as well as for the fiscal year 2012, over
the last 7 or 30 days period.
Magnitude of estimate Revision
Since the analysts did not change their estimates, the estimate
for the second-quarter 2012 remained fixed at 65 cents over the
last 7 or 30 days.
Positive Earnings Surprise History
With respect to earnings surprise, PetSmart has outperformed the
Zacks Consensus Estimate over the last four quarters, with an
average of 6.9%. Based on the company's previous performances, we
expect PetSmart to continue with this momentum in the coming
The company's innovative and differentiated products as well as
its sustained effort to expand its portfolio of brands and
assortments enabled it to deliver healthy results. PetSmart has
Martha Stewart Living Omnimedia Inc.
) to launch different lines of pet products.
Based on higher sales and cost containment efforts in the first
quarter of 2012, the company carries a Zacks #2 Rank, which
translates into short-term Buy rating. We are also maintaining our
long-term 'Outperform' recommendation on its stock.
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PETSMART INC (PETM): Free Stock Analysis Report
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