PetSmart (PETM) is expected to report Q4 earnings after the market close on Wednesday, March 4 with a conference call scheduled for 4:30 pm ET.
Analysts are looking for a profit of 59c on revenue of $1.36B. The consensus range is 55c-62c for EPS, and revenue of $1.34B-$1.39B, according to First Call. In November, PetSmart forecast Q4 EPS 59c-62c and SSS up in the low to mid single digits. The company forecast FY08 EPS $1.49-$1.52 vs. First Call consensus of $1.49 and sales growth in the high single digits.
In January, Goldman Sachs analyst Matthew J. Fassler upgraded his investment rating on the pet-food and supplies chain to Buy from Neutral, saying its free-cash flow yield suggests attractive value. He expects PetSmart to continue to generate sales growth as it brings return traffic through consumables and selected services such as grooming, which are both seen as resilient during the economic downturn. Analyst and investors will listen for comments on how sales are doing as retailers like Target (TGT) and Wal-Mart (WMT) expand in the pets segment.