PetSmart Q2 Profit Tops View; Backs FY14 Outlook - Quick Facts

(RTTNews) - PetSmart Inc. (PETM) reported that its second-quarter net income increased to $98.1 million or $0.98 per share, from $93.4 million or $0.89 per share in the same quarter last year. Analysts polled by Thomson Reuters expected the company to report earnings of $0.94 per share for the quarter. Analysts' estimates typically exclude special items.

Net sales for the quarter rose 1.4% to $1.73 billion from $1.71 billion in the prior year quarter. Twenty three analysts had consensus revenue estimate of $1.73 billion for the quarter.

Comparable store sales, or sales in stores open at least one year, including online sales, decreased 0.5%, with comparable transactions decreasing 2.6%. Services sales, which are included in net sales, grew 4.7% to $214 million.

For the third quarter 2014, the company expects earnings per share to be in the range of $0.93 to $0.97, and comparable store sales growth flat to slightly down. Analysts expect the company to report earnings of $0.94 per share.

Looking ahead for fiscal 2014, the company continues to expects earnings per share to be between $4.29 to $4.39, on net sales growth in the low-single digits and comparable store sales relatively flat. Street currently is looking for fiscal year 2014 earnings of $4.32 per share on annual revenues of $7.06 billion.

Separately, the company announced that based on a thorough business review that began last spring, the Board of Directors has determined that it will explore strategic alternatives for the company to maximize value for shareholders, including a possible sale of the company.

The Board has been working with JP Morgan Securities LLC and Wachtell, Lipton, Rosen & Katz to assist in the process.