The Time Is Right For Investors To Buy PetSmart
Paul Nouri, CFP • 14 Comments
Paul Nouri, CFP • 14 Comments
Nov. 18, 2014, 7:03 PM
- PetSmart (NASDAQ:PETM) is guiding for FQ4 EPS of $1.34-$1.38 vs. a $1.37 consensus.
- Comparable store sales were flat Y/Y in FQ3 - average ticket rose 2.4%, but comparable transactions fell by 2.4%. Comparable sales growth is expected to be "slightly positive" in FQ4.
- Merchandise sales were 88.2% of revenue, services 11.2%, and everything else 0.6%. Gross margin fell 40 bps Y/Y to 29.4%. Opex was 20.8% of revenue, even with a year ago.
- PetSmart expects its restructuring program (previous) to yield $200M/year in pre-tax savings by 2016.
- FQ3 results, PR
Nov. 18, 2014, 5:17 PM
- PetSmart (NASDAQ:PETM): Q3 EPS of $1.02 beats by $0.08.
- Revenue of $1.74B (+2.4% Y/Y) beats by $10M.
- Shares +0.18% AH.
Nov. 17, 2014, 5:35 PM
Nov. 17, 2014, 2:12 PM
- Wedbush Securities doesn't think PetSmart (PETM +0.3%) will issue any material update on its sale process when it releases earnings later this week.
- It's noted that P-E bidders have until December 4 to submit an offer.
- The investment firm, which forecasts an in-line Q3 from the retailer, sees some downward risk for PETM shares with the LBO math not quite working out.
Nov. 7, 2014, 12:58 PM
- P-E firms including KKR, Apollo Global Management (NYSE:APO), BC Partners and Clayton Dubilier & Rice have been invited to the final round of bidding for PetSmart (NASDAQ:PETM), WSJ reports.
- A deal to take PETM private would be the largest leveraged buyout of the year, according to data from Dealogic.
Oct. 29, 2014, 2:53 PM| Oct. 29, 2014, 2:53 PM | 3 Comments
Oct. 23, 2014, 10:51 AM
- KKR (KKR +1.4%) is taking a serious look at PetSmart (PETM +0.6%), according to the New York Post.
- The investment firm has a nice track record in the pet supplier business after guiding Pets at Home to a profitable IPO.
- Firdt-round bids on PetSmart are due in by the end of the month with JPMorgan overseeing the action.
- Investors haven't really assigned a buyout premium on PETM as shares trade lower than they did three months ago.
Oct. 6, 2014, 4:10 PM
- PetSmart, Inc (NASDAQ:PETM) declares $0.195/share quarterly dividend, in line with previous.
- Forward yield 1.15%
- Payable Nov. 14; for shareholders of record Oct. 31; ex-div Oct. 29.
Oct. 6, 2014, 7:17 AM
Sep. 5, 2014, 3:13 PM
- PetSmart (PETM -0.7%) is reinstated with an Underperform rating and $55 price target at BofA/Merrill, which now believes there is "no doggone way" the company gets taken private.
- Hopes of a buyout have kept the stock price propped up, but analyst Denise Chai believes the prospect of a deal is diminishing since a potential buyer has not emerged following Jana's suggested sale of the company; what's more, PETM's high valuation and "challenged fundamentals" make a potential acquisition unattractive.
- The firm thinks the new initiatives laid out by management, including cost cutting and broadening of mass food and omnichannel expansion, are insufficient to turn around the business.
Aug. 19, 2014, 9:31 PM
Aug. 19, 2014, 6:18 PM
- Along with its Q2 results, PetSmart (NASDAQ:PETM) has confirmed reports it will explore strategic alternatives, including a possible sale. JPMorgan has been hired to help out.
- The company has also announced: it's buying online pet product retailer and content provider Pet360 for $130M up-front + up to $30M in earn-outs. PetSmart notes Pet360 reaches 12M+ "pet parents" per month, and that its assets include several popular pet food and content properties. The deal is expected to close in September.
- PetSmart has launched "a broad cost-reduction program" that will "target all areas of the business, including, in order of magnitude, cost of goods sold, logistics, sourcing, store operating costs and overhead." More details will be given next quarter.
- Comparable store sales fell 0.5% Y/Y in Q2. Q3 EPS guidance is at $0.93-$0.97 (consensus is at $0.94), and full-year EPS guidance is at $4.29-$4.39 (consensus is at $4.32).
- Full-year net sales are expected to grow at a low-single digit clip (consensus is at 2%), and comparable store sales are expected to be relatively flat.
- Shares are halted. Q2 results, PR.
Aug. 19, 2014, 6:00 PM
- PetSmart (NASDAQ:PETM): Q2 EPS of $0.98 beats by $0.04.
- Revenue of $1.73B (+1.4% Y/Y) in-line.
- Shares +1.29% AH.
Aug. 19, 2014, 5:30 PM
Aug. 19, 2014, 3:50 PM
Aug. 18, 2014, 2:40 PM
- Jana Partners discloses in a SEC filing that it received an anonymous package with sensitive inside information about PetSmart (PETM).
- The documents detail PetSmart's business plans and a concession from the company that it has missed internal projections.
- The authenticity of the information has not been confirmed by PetSmart.
- SEC Form 13D
PetSmart Inc provides specialty products, services and solutions for the lifetime needs of pets in North America. It offers products for all the life stages of pets, professional grooming, training, day camp for dogs and boarding.
Industry: Specialty Retail, Other
Country: United States
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