PetSmart, Inc (PETM) Wednesday reported a rise in fourth-quarter profit as revenues grew in the high single digits, driven by stores open for over a year. Earnings and revenues for the quarter came in ahead of Street estimates.
For 2012, the company expects growth trajectory, with guidance in a range stronger than what the Street currently estimates. However, the comparable-store sales-growth estimate is anticipated to come in below 5 percent for 2012.
PetSmart's net income for the fourth quarter rose to $102.0 million or $0.91 per share from $90.3 million or $0.77 per share in the year-ago quarter.
On average, 24 analysts polled by Thomson Reuters expected earnings of $0.90 per share for the quarter. Analysts' estimates typically exclude special items.
Total sales for the quarter grew 8 percent to $1.637 billion from $1.520 billion in the year-ago quarter. Twenty-two street analysts had a consensus revenue estimate of $1.620 billion for the quarter.
Comparable store sales, or sales in stores open at least a year, grew 5.5 percent from last year. The company opened 25 stores in the quarter and closed 3.
Gross profit dipped slightly to 30.4 percent from 30.6 percent last year, which was offset by operating, general and administrative expenses decreasing to 20.0 percent of revenues from 20.7 percent last year. Operating income rose 0.5 percent.
The company repurchased $337 million of stock during 2011, with $101 million repurchased during the fourth quarter, and distributed $60 million in dividends during 2011.
For the first quarter of 2012, the company expects comparable store sales growth in the low- to mid-single digits range, and earnings between $0.70 to $0.74 per share, which is above Street estimates of $0.70 per share.
For 2012, the company expects earnings between $3.02 to $3.16 per share, total sales growth in the 7.5 to 8.5 percent range, with 3 to 4 percent comparable store sales growth. The lower end of the company's estimate translates to $6.570 billion. The Street currently expect earnings of $3.01 per share for 2012, on revenues of $6.550 billion.
At the end of the year, the company had 1232 stores compared with 1187 a year ago.
PETM closed Wednesday's regular trading at $55.74, up $0.01or 0.02%, on the Nasdaq. In the after-hours, the stock lost $1.04 or 1.87%. Over the past year, the stock traded in a range of $37.76 - $56.39.
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