Petsmart Profit Tops Expectations

Petsmart’s second quarter brought with it surprisingly high profits, allowing the pet products retailer to narrowly beat the average analyst estimate for its second-quarter performance. Despite of its relative success in the second quarter, though, Petsmart has decided to cut its full year view off of predictions that sales would end up lower than expected.
 
Previously, Petsmart had predicted earnings of anywhere from $1.42 to $1.52 per share, but now the company has decided to revamp its earnings prediction to a range from $1.37 to $1.45 per share. Analysts have predicted that Petsmart will bring in $1.52 per share, but they may also change their tune after giving Petsmart’s performance a second look.
 
The recession has hardly dented Petsmart’s profits, with the company posting $39.0 million in net earnings, compared to $37.2 million in the same time period last year. Net sales are up 5.4 percent to $1.31, seemingly only held back by fluctuations in foreign currencies, and sales at stores open at least a year are up 0.8 percent.

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