UPDATE 2-PetMed Q4 profit beats estimates, shares rise

lunedì 11 maggio 2009 17:14

* Q1 EPS $0.25 vs est $0.23

* Reorders, new orders sales grow

* Advertising spend up 12 pct

* Stock up 14 pct (Adds CEO and analyst comments, details, stock activity)

By Amitha Rajan

BANGALORE, May 11 (Reuters) - PetMed Express Inc (PETS.O: Quotazione) posted a fourth-quarter profit that exceeded analysts' estimates, helped mainly by growth in reorders and new orders and effective cost controls, sending the pet pharmacy's shares up 14 percent.

"We are focusing on efficiency as far as payroll is concerned and that helped us. We are more efficient with payroll, maximizing the capacity of each resource that we have," CEO Mendo Akdag said on a conference call with analysts.

Analyst Edward Woo of Wedbush Morgan Securities said the company also benefitted from their aggressive advertising initiatives and earlier warmer weather.

"Warmer weather increases people's desire to go outside as well as increases flea and tick population, so it causes more consumers to buy the medication earlier," Woo told Reuters.   Continua...