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PetMed Express shares slip after missing Wall Street's 1Q fiscal profit estimate

PetMed Express sells prescription and non-prescription pet medications as well as nutritional supplements
Man with two dogs
The company was founded in Florida in 1996

Shares in PetMed Express Inc (NASDAQ:PETS) took a tumble in the morning session after the US pet pharmacy failed to meet Wall Street’s profit estimate for its fiscal first-quarter.

The online pharmacy for pets reported net income of US$12.6mln, or US$0.62 per share in the quarter, up from net income of US$9.3mln or 45 cents per share in the year-ago quarter. Analysts had expected PetMed would earn an average of US$0.63 on sales of US$85.68mln.

In morning trade, PetMed shares fell 14.7% to US$34.30.

Its sales, meanwhile, did manage to surpass estimates, jumping to US$87.4mln, up from US$79.7mln in the same period a year ago.

Looking at the details, its new order sales rose nearly 5% to US$15.9mln for the three months ended June 30, compared to US$15.2mln in the year-ago period.

The company also said it would lift its quarterly dividend to US$0.27 from US$0.25 and pay the dividend on August 10 to shareholders who are on record as of August 3.

PetMed also benefited from favorable tax changes, introduced last year, which pushed its tax rate down to 21% from 35%.  

Founded in Florida in 1996, PetMed Express sells prescription and non-prescription pet medications as well as nutritional supplements for dogs and cats.

The company came under fire in 1999 for selling drugs that did not have prescriptions, false advertising as well as not labeling drugs correctly. A fine was paid and charges were settled with the Florida Pharmacy Board.

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