PetSmart beats in 3Q, raises outlook

Associated Press

PHOENIX (AP) — PetSmart Inc.'s shares jumped in after-hours trading Wednesday after the pet retailer reported strong third-quarter results on strong sales and raised its full-year outlook.

The Phoenix-based company earned $82.3 million, or 75 cents per share, for the quarter that ended Oct. 28. That's compared with $56.2 million, or 50 cents per share, earned in the same quarter last year.

Revenue increased 9 percent to $1.63 billion.

Analysts polled by FactSet were expecting the company to earn 63 cents per share on revenue of $1.62 billion.

Pet Smart said that revenue from its stores open at least a year increased 6.5 percent as shoppers bought more goods and services in its stores. The company operates 1,269 stores at the end of the quarter, versus 1,210 last year.

PetSmart also said that it expects to earn $3.47 to $3.51 per share for the year, up from its prior forecast of $3.30 to $3.40 per share. This year includes an extra week. Analysts were expecting the company to earn $3.39 per share for the year.

The company also announced Wednesday that Chip Molloy, executive vice president and chief financial officer, will resign in early 2014, allowing him to spend more time with his family. Molloy will continue in his current role until June 2013 and stay on as a special advisor until March 2014.

Shares of PetSmart jumped $4.05, more than 6 percent, to $68.90 in after-hours trading. Its shares fell 86 cents to close regular trading at $64.85.