PetMed Express (NASDAQ:PETS) Posts Earnings Results

PetMed Express (NASDAQ:PETS) released its quarterly earnings results on Thursday. The company reported ($0.28) EPS for the quarter, missing analysts’ consensus estimates of $0.12 by ($0.40), FiscalAI reports. PetMed Express had a negative return on equity of 83.86% and a negative net margin of 17.34%.The company had revenue of $41.02 million for the quarter, compared to the consensus estimate 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 Down 9.9%

Shares of PETS stock opened at $1.83 on Friday. PetMed Express has a 12 month low of $1.57 and a 12 month high of $4.10. The company has a market cap of $39.11 million, a PE ratio of -1.33 and a beta of 0.76. The business’s 50 day moving average is $1.91 and its two-hundred day moving average is $2.29.

Wall Street Analysts Forecast Growth

A number of analysts have commented on the stock. Wall Street Zen lowered shares of PetMed Express from a “hold” rating to a “sell” rating in a research note on Saturday. Zacks Research raised shares of PetMed Express to a “hold” rating in a research report on Thursday, April 30th. 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 equities research analyst has rated the stock with a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat.com, the company currently has a consensus rating of “Reduce”.

Institutional Inflows and Outflows

A number of large investors have recently modified their holdings of the business. Steel Partners Holdings L.P. acquired a new position in PetMed Express in the 4th quarter valued at approximately $620,000. Federated Hermes Inc. grew its holdings in shares of PetMed Express by 30.1% during the 4th quarter. Federated Hermes Inc. now owns 627,743 shares of the company’s stock worth $2,009,000 after purchasing an additional 145,357 shares in the last quarter. Bridgeway Capital Management LLC increased its position in shares of PetMed Express by 164.3% during the third quarter. Bridgeway Capital Management LLC now owns 107,816 shares of the company’s stock valued at $271,000 after purchasing an additional 67,016 shares during the period. CIBC Bancorp USA Inc. bought a new stake in shares of PetMed Express during the third quarter valued at approximately $153,000. Finally, UMB Bank n.a. acquired a new position in shares of PetMed Express in the fourth quarter valued at $192,000. 73.33% of the stock is currently owned by institutional investors and hedge funds.

About PetMed Express

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.