PetSmart Q3 Profit Rises 17 Percent, Offers Strong Outlook

Phoenix, AZ (AHN) - PetSmart Inc. announced Wednesday third quarter earnings rose 17 percent as same-store sales grew 5.4 percent in the quarter. The company also offered full year guidance that tops current estimates.

The pet supplies company posted third quarter earnings of $35.8 million or 28 cents a share, up from $29.5 million or 23 cents a share in the same period a year earlier.

Revenue grew to $1.25 billion from $1.12 billion last year, helped in part by the 5.4 percent same-store sales growth.

The results were better than expected as analysts were expecting earnings of 26 cents a share, according to FactSet Research. Revenue of $1.25 billion was in-line with estimates.

The company saw strength in its pet services sales, up 15.2 percent from last year to $127.8 million.

PetSmart offered detailed guidance for the fourth quarter and full-year. The company expects to earn 59 to 62 cents a share in the fourth quarter, relatively in-line with analyst expectations. Same-store sales are expected to grow at low to mid single digits.

For the full year 2008, PetSmart expects high single digit growth in total sales, leading to an earnings range of $1.49 to $1.52 a share. The range is above analyst expectations for $1.48 a share.