PetSmart Inc. (PETM) shares soared more than 10% in after-hours trading on Wednesday after the company reported better-than-expected fourth-quarter results and gave upbeat guidance for the fiscal first quarter and full-year.
The pet-product retailer said it expects full-year earnings in the range of $1.73 to $1.83 a share on low-to mid-single digit revenue growth, with comparable-sales rising in the low-single digits. Analysts polled by Thomson Reuters had projected earnings of $1.68 a share on sales growth of 5%, with sales of $5.53 billion.
The company projected first-quarter earnings ranging from 40 to 44 cents a share, with comparable-store sales registering a low-single digit increase. The view topped estimates; analysts had expected to earnings of 38 cents a share for the quarter.
The chain reported fourth-quarter earnings of $75 million or 61 cents a share, compared to year-ago earnings of $78.4 million or 62 cents a share. Revenue rose 3.4% to $1.41 billion. Analysts had projected earnings of 56 cents a share on revenue of $1.4 billion.
"We are pleased to report our results for the fourth quarter, with solid earnings and positive comparable store sales. Improvements in traffic, as well as a strong holiday performance led to better results than expected for the quarter," said Chief Executive Bob Moran in a statement.
Shares of PetSmart fell 7 cents or 0.25% to $27.71 a share. The stock rose $2.95 or 10.63% in after-hours trading after the retailer weighed in with quarterly results.
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