Wedbush Has Underperform On PetMed Express

Wedbush Securities has an Underperform rating and a $10 price target on PetMed Express (NASDAQ: PETS) as it previews earnings from the company.

In a note to clients, Wedbush writes, "We expect PETS to report results about in line to our estimates for revenue of $72 million and EPS of $0.25, and consensus for revenue of $74 million and EPS of $0.24. The company does not provide financial guidance. We believe competition and higher marketing costs will cause another quarter of earnings decline. We expect new customer additions of 221,000 compared with 220,000 in Q1 FY11 due to higher marketing spend."

Shares of PETS lost 23 cents yesterday to close at $11.78, a loss of 1.92%.