PetMed Express Q3 Earnings Lag Street Forecasts, Posts Lower Profitability

PetMed Express Inc PETS reported a Q3 EPS of $0.21, missing the consensus of $0.33 and lower than $0.38 posted a year ago.

• Net sales were $60.7 million, down 7.9% Y/Y and far below the consensus of $68.47 million.
• The average order size increased from $88 to $89 for the quarters ended December 31, 2020, and 2021, respectively.
• "The future of PetMed is much broader than just a prescription eCommerce company, and we expect to show progress in the coming quarters as we develop into a broader expert health and wellness offering," CEO Matt Hulett said in a statement.
• Net income fell almost 44% Y/Y at $4.25 million in Q3.
• The Board of Directors declared a quarterly dividend of $0.30 per share, payable on February 18 for the record date of February 7.
• The gross margin declined marginally from 29.8% to 29.2%, while the operating margin declined from 14.1% to 8.5% during Q3.
• Adjusted EBITDA also fell almost 30% Y/Y to $7.58 million.
• The company ended the quarter with $108.9 million in cash.
• Price Action: PETS shares closed lower by 1.62% at $23.62 on Monday.