PetSmart (NASDAQ:PETM) is expected to report Q1 earnings after the market close on Wednesday, May 20 with a conference call scheduled for 4:30 pm ET.
Analysts are looking for a profit of 30c on revenue of $1.32B. The consensus range is 27c-34c for EPS, and revenue of $1.31B-$1.35B, according to First Call. In March, PetSmart forecast FY09 EPS $1.40-$1.50 versus First Call consensus of $1.47, and revenue growth in the mid-to-high single digits versus First Call consensus of $5.33B. The company also guided FY09 same-store sales in the low single digits.
Piper Jaffray recently said that while it has an optimistic view on shares, it's not making a call on the current quarter. The firm believes the company will see "slight inflation" in the latter half of the year and is likely to hold pricing, particularly for mid- to upper-tier brands. The firm also believes PetSmart's hard goods business improved in Q1 compared to Q4. Piper Jaffray thinks PetSmart has the opportunity to reduce its SKU count in stores, particularly in the hard goods category. The firm sees FY09 SSS up 2% and an operating margin decline of 40 basis points.