Petsmart 3Q profit rises 6 percent on higher sales

AP News
Posted: Nov 18, 2009 4:42 PM

Petsmart Inc. said Wednesday its profit rose 6 percent in the third quarter as consumers continued to spend money on their pets even amid high unemployment and economic uncertainty.

The company also raised its forecast for full-year profit.

The pet supplies seller, based in Phoenix, earned $38.1 million, or 31 cents per share, in the quarter that ended Nov. 1. That's up from the $35.8 million, or 28 cents per share, it earned a year earlier.

Revenue rose 3 percent to $1.29 billion from $1.25 billion.

The latest quarterly results beat consensus estimates of analysts surveyed by Thomson Reuters, who expected profit of 27 cents per share on sales of $1.28 billion.

Sales at stores open at least a year edged up 0.3 percent during the quarter. Sales at stores open at least a year are a key measure of retailer performance because they measure growth at existing stores rather than from newly opened ones.

The retailer forecast fourth-quarter profit of 52 cents to 56 cents per share, with sales at stores open at least a year expected to be flat or to grow by a low single digit percentage.

For the full fiscal year, Petsmart said it would earn $1.50 to $1.54 per share, up from the $1.43 to $1.51 per share it had predicted last month.

On average, analysts are expecting quarterly and full-year earnings per share of 55 cents and $1.50, respectively.

Petsmart shares fell 31 cents to $26 in after-hours trading Wednesday after closing at $26.31, up 35 cents on the day.