Benzinga | Jan 25, 2022 05:46AM EST

PetMed Express Q3 Earnings Lag Street Forecasts, Posts Lower Profitability

PetMed Express Inc (NASDAQ:PETS) reported a Q3 EPS of $0.21, missing the consensus of $0.33 and lower than $0.38 posted a year ago.

* Net sales were $60.7 million, down 7.9% Y/Y and far below the consensus of $68.47 million.

* The average order size increased from $88 to $89 for the quarters ended December 31, 2020, and 2021, respectively.

* "The future of PetMed is much broader than just a prescription eCommerce company, and we expect to show progress in the coming quarters as we develop into a broader expert health and wellness offering," CEO Matt Hulett said in a statement.

* Net income fell almost 44% Y/Y at $4.25 million in Q3.

* The Board of Directors declared a quarterly dividend of $0.30 per share, payable on February 18 for the record date of February 7.

* The gross margin declined marginally from 29.8% to 29.2%, while the operating margin declined from 14.1% to 8.5% during Q3.

* Adjusted EBITDA also fell almost 30% Y/Y to $7.58 million.

* The company ended the quarter with $108.9 million in cash.

* Price Action: PETS shares closed lower by 1.62% at $23.62 on Monday.