12.80, -0.19, -1.46%) has jumped to a fresh record premarket, after the company beat
quarterly expectations and issued upbeat guidance.
The provider of pet medication and operator of veterinary clinics reported above-consensus second quarter earnings of $0.66 per share on a 96.2% year/year spike in revenue to $171.10 mln, which was also ahead of expectations.
In addition to easily beating expectations, the company issued strong revenue guidance for the fiscal year, expecting sales of $500 mln, which is ahead of market expectations. The company reaffirmed its guidance for adjusted EBITA between $40 mln and $45 mln.
Product sales revenue grew 70.6% year/year to $148.71 mln. Services revenue hit $22.43 mln with no prior-year comparison. The overall increase was fueled by growth at new and existing retail partners.
The company opened 17 wellness centers and three regional offices during the quarter, bringing its total number of wellness centers to 29. The number of regional offices is now up to 34. PetIQ ended the quarter with 20 operational VetIQ centers.
Gross margin weakened to 15.38% from 18.30% one year ago, due in part to expenses associated with openings of new locations. On an adjusted basis, gross margin was reported at 16.40%. Long-term debt increased to $107.40 mln from $17.18 mln one year ago.
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