PetSmart Q3 Profit Beats View, Forecast Raised (PETM)

Created by Dividend.com

Pet products retailer PetSmart, Inc. (PETM) late Wednesday said its third quarter profit rose 6% from last year, helped by higher pet services sales, and raised its full-year outlook.

The Phoenix-based company reported third quarter net income of $38.1 million, or 31 cents per share, up from $35.8 million, or 28 cents per share, in the year-ago period. Sales jumped 3.5% from last year, to $1.29 billion.

On average, Wall Street analysts expected a lower profit of 27 cents per share, on slightly smaller revenue of $1.28 billion.

Looking ahead, the company boosted its full-year outlook to a range of $1.50 to $1.54 per share, up from a prior view of $1.43 to $1.51. Analysts currently expect $1.50 per share for the year.

PetSmart shares fell 31 cents, or -1.2%, in premarket trading Thursday.

The Bottom Line
We recently removed shares of PETM from our recommended list on Nov.17, when the stock was trading at $25.99. The company has a 1.52% dividend yield, based on last night’s closing stock price of $26.31. The stock has technical support in the $20-$22 price area. If the shares can firm up, we see overhead resistance around the $28-$29 price levels. We would remain on the sidelines for now.

PetSmart, Inc. (PETM) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.4 out of 5 stars.

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