What happened
While animal healthcare specialist PetMed Express(NASDAQ: PETS) advertises itself as "your trusted pet expert," the stock market wasn't trusting it as a solid investment this week. According to data compiled by S&P Global Market Intelligence, the company's shares fell by 13% for the week, largely due to its lackluster quarterly results.
So what
In the third quarter of its fiscal 2023, PetMed Express booked $58.9 million in net sales, a slight drop from the $60.7 million it made in the same quarter of the previous fiscal year. On the bottom line, the company landed in the red, although not deeply -- its GAAP net loss was $19,000. However, this compared unfavorably to its nearly $4.3 million profit in the prior-year period.
Neither line item met analysts' estimates. On average, the prognosticators following Pet Med Express's stock were expecting $62.9 million on the top line, and a net income figure of $0.21 per share.
The company attempted to put a positive spin on its performance. Management pointed out that while sales were down on a year-over-year basis, they were flat sequentially thanks to a relatively long flea and tick season.
Now what
Meanwhile, PetMed Express is maintaining its dividend at its recent levels. The company declared a new quarterly payout of $0.30 per share, matching the previous seven distributions. Prior to that, it handed out $0.28 per share. The upcoming dividend is to be paid on Feb. 27 to investors of record as of Feb. 20, and it yields just over 6% at the most recent closing stock price.
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Eric Volkman has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
