PetMed Express (NASDAQ:PETS) Announces Quarterly Earnings Results

PetMed Express (NASDAQ:PETS) released its earnings results on Thursday. The company reported ($0.28) earnings per share for the quarter, missing analysts’ consensus estimates of $0.12 by ($0.40), FiscalAI reports. PetMed Express had a negative return on equity of 76.86% and a negative net margin of 32.00%.The business had revenue of $41.02 million during the quarter, compared to analysts’ expectations of $71.00 million.

Here are the key takeaways from PetMed Express’ conference call:

• Revenue remained weak: Q1 net sales fell 19.9% year over year to $41.0 million, primarily due to continued softness in prescription medication sales, while gross margin declined to 27.6% from 28.1%.
• The net loss narrowed substantially to $6.1 million from $34.2 million a year ago, largely because the prior-year period included a goodwill and trade-name impairment charge; however, adjusted EBITDA loss worsened to $3.4 million from $2.7 million.
• Customer acquisition efficiency improved, with approximately 70,000 new customers added and customer acquisition cost declining 15% year over year to $60. Recurring sales increased to 61.5% of gross sales from 57.6%, supporting the company’s subscription-driven base.
• PetMeds launched its first large-scale white-label pharmacy partnership with Rural King, giving customers across more than 150 stores access to pet medications and auto-ship services while creating a potential new customer acquisition and B2B revenue channel.
• The company agreed to sell and lease back its headquarters and distribution center for $37 million, which management expects will strengthen the balance sheet and provide financial flexibility; PetMeds had $13.1 million in cash and no debt at quarter-end.

PetMed Express Stock Up 1.0%

PETS opened at $2.03 on Friday. The stock’s fifty day moving average is $1.91 and its two-hundred day moving average is $2.30. The company has a market capitalization of $43.38 million, a P/E ratio of -0.74 and a beta of 0.76. PetMed Express has a 52 week low of $1.57 and a 52 week high of $4.10.

Analysts Set New Price Targets

A number of analysts have recently issued reports on the stock. Zacks Research raised shares of PetMed Express to a “hold” rating in a research note on Thursday, April 30th. Wall Street Zen raised shares of PetMed Express from a “strong sell” rating to a “hold” rating in a research note on Saturday, June 6th. Finally, Weiss Ratings upgraded shares of PetMed Express from a “sell (e+)” rating to a “sell (d-)” rating in a report on Wednesday, August 5th. One research analyst has rated the stock with a Hold rating and one has given a Sell rating to the company’s stock. According to data from MarketBeat, PetMed Express currently has an average rating of “Reduce”.

Hedge Funds Weigh In On PetMed Express

Several institutional investors have recently made changes to their positions in PETS. Empowered Funds LLC raised its holdings in shares of PetMed Express by 14.2% in the fourth quarter. Empowered Funds LLC now owns 68,651 shares of the company’s stock valued at $220,000 after acquiring an additional 8,535 shares in the last quarter. Man Group plc grew its holdings in PetMed Express by 10.7% during the 4th quarter. Man Group plc now owns 167,152 shares of the company’s stock worth $535,000 after acquiring an additional 16,113 shares in the last quarter. Bridgeway Capital Management LLC increased its position in PetMed Express by 17.2% during the 4th quarter. Bridgeway Capital Management LLC now owns 126,351 shares of the company’s stock valued at $404,000 after purchasing an additional 18,535 shares during the period. Jain Global LLC purchased a new position in PetMed Express during the 4th quarter valued at about $78,000. Finally, Steel Partners Holdings L.P. purchased a new position in PetMed Express during the 4th quarter valued at about $620,000. Hedge funds and other institutional investors own 73.33% of the company’s stock.

PetMed Express Company Profile

PetMed Express, Inc operates as an online and catalog-based pet pharmacy and retail supplier under the 1-800-PetMeds brand name. The company distributes prescription and non‐prescription medications, nutritional supplements, flea and tick control products, and a range of pet health supplies directly to consumers. Through its licensed veterinary pharmacy in Delray Beach, Florida, PetMed Express fills orders for dogs, cats and other companion animals, offering both branded and generic products alongside its own private‐label formulations.

Founded in 1996 by Marc Puleo, PetMed Express built its business on the premise of convenience and cost savings for pet owners seeking reliable access to veterinary medications.