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PetIQ CEO: Q2 Boosted By Sales To 'Pet Parents'

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PetIQ CEO: Q2 Boosted By Sales To 'Pet Parents'

Animal wellness company PetIQ Inc (NASDAQ: PETQ) handily beat expectations in its second-quarter report Thursday, mostly due to pet owners spending more money on their beloved animals.

What Happened

PetIQ showed a 30% year-over-year increase in revenue in the second quarter. Pet owners have become "extremely receptive" to its retail partnerships, company Chairman and CEO Cord Christensen said during a CNBC "Mad Money" interview Thursday.

Consumers want better access to buy products that improve the health of their pets, and the company now sells veterinarian services and products at retailers.

"Our partnerships with retailers has allowed us to access a population of pets and bring our mission forward of being advocates for those pet parents," he said.

Why It's Important

PetIQ is able to not only save pet owners through partnerships at the retail level but also improve care, especially for the "millions of pets" that haven't been receiving proper care, Christensen said. This mission is contributing to the consistent improvement in the company's financial results, he said. 

PetIQ is more than just a provider of goods to retail partners: it operates pet clinics, mostly inside major retailers, the CEO said. 

"We put the clinics where the pets are — we call it our 'follow the pets mission,'" he said.

What's Next

PetIQ used to compete with Perrigo Company PLC (NYSE: PRGO)'s animal health business, but now that business is under PetIQ's umbrella following aMay 2019 acquisition.

The acquired property should be able to show 15% year-over-year growth with a "very nice margin profile," Christensen said. 

PetIQ shares were trading 4.82% higher at $34.35 at the time of publication Friday. 

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Posted-In: CNBC Cord Christensen Jim Cramer Mad MoneyEarnings News Media Best of Benzinga

 

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