Pet products retailer PetSmart, Inc. (PETM) late Wednesday posted much better-than-expected third quarter earnings results and lifted its full-year outlook for the second time this year.
The Phoenix-based company reported third quarter net income of $82.3 million, or 75 cents per share, compared with $56.2 million, or 50 cents per share, in the year-ago period.
Revenue rose 8.7% from last year to $1.63 billion.
On average, Wall Street analysts expected a much smaller profit of 63 cents per share, on slightly lower revenue of $1.62 billion.
For the fourth quarter, PetSmart forecast earnings of $1.16 to $1.20 per share, which could miss or meet analysts’ view of $1.20 per share. As for the full year, the company lifted its outlook to a range of $3.47 to $3.51 per share, up from a prior view of $3.30 to $3.40.
PetSmart shares rose $3.55, or +5.5%, in premarket trading Thursday.
The Bottom Line
Shares of PetSmart (PETM) have a 1.02% dividend yield, based on last night’s closing stock price of $64.85. The stock has technical support in the $59-$63 price area. The stock is trading near the all-time high range of $70-$72 a share.
PetSmart, Inc. (PETM) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.4 out of 5 stars.