PetSmart Falls on Q4 Results, Weak Outlook

Shares of PetSmart PETM were trading around 7 percent lower in Wednesday's after hours session after the company reported a higher profit for the fourth-quarter, but issued a weak fiscal 2013 outlook. Earnings in the period were ahead of Wall Street expectations, but sales missed consensus estimates. For the quarter, the company reported net income of $134.0 million or $1.24 per share, compared to $102.0 million or $0.91 per share, in last year's corresponding period. This beat Wall Street analysts' consensus EPS estimates of $1.21 for the fourth-quarter. Sales in the period were up 15 percent to $1.88 billion from $1.64 billion last year. This barely missed Street consensus revenue estimates of $1.89 billion. Comparable store sales in the quarter were up 4.6 percent. Looking ahead to Q1, PetSmart said that it sees earnings per share of $0.92 to $0.98 on comparable store sales growth of 2 to 4 percent. Currently, Wall Street analysts have consensus EPS estimates of $0.94 for the fiscal first-quarter. For the full-year 2013, the company's guidance was below consensus. PetSmart said that it sees full-year EPS of $3.76 to $3.92 on sales growth of 2 to 4 percent. This compares to current consensus earnings per share estimates of $3.93.