PetIQ, Inc. (NASDAQ: PETQ)
On Tuesday August 14th, 2018, PetIQ, the pet medicine, products manufacturer and distributor/wholesaler of pet toys, apparel, supplies and wellness products reported second fiscal quarter earnings after the market closed the trading.
Shares, which already were trading higher by $1.04 on the day, closed at $28.28.
As soon as the earnings were announced, shares ripped higher and wound up closing up an additional 14.92% or at $32.50 which was higher $4.22.
It is interesting to know, that while the shares have been in a steady uptrend for quite a while now the company has a very high short interest of nearly 37%.
This means that over 1/3 of the shares have been sold short and will need to be bought back at a later time. Most of the time these shares are hoped to be purchased back at lower prices by traders and speculators.
However, with the move that is anticipated after this earnings announcement, these short-sellers may have to go into the open market as soon as tomorrow morning and buy back those shares which could send the prices even higher and higher as they chase to replace what they owe.
The Numbers
After non-recurring costs and adjustments, the company earned $0.66 per share. The average estimate of analysts had them coming in somewhere around $0.39 per share.
Revenue posted at $171 million dollars which was much higher than the $148 million dollars expected by most analysts
Company Comments
Cord Christensen, PetIQ’s Chairman and Chief Executive Officer had this to say to investors about the earnings:
“Our strong, broad-based growth continued during the second quarter resulting in record net sales. Our team expanded PetIQ’s pet preventative and wellness veterinarian products and services offerings to further our mission to make pets’ lives better with more affordable and accessible veterinarian services and products. We are very pleased with the progress of our “Follow the Pets” growth initiatives including the opening of 17 wellness center locations in the second quarter, with all 20 VetIQ wellness centers completed. Based on these strong operational and financial results as well as our outlook for the remainder of the year, we are raising our annual net sales guidance to $500 million. We believe our category leadership, broad product portfolio, compelling service offerings, value proposition and strong customer relationships will continue to fuel our future growth and value for our shareholders.”
The Charts
The above price chart shows the lengthy uptrend with the green arrow. The upper right corner with the green rectangle is the area which shares will likely open for trading on Wednesday morning.
The above price chart shows the regular training session on the left, and the after-hours trading on the right. It is easy to see just exactly when the earnings announcement was released and shares bolted higher. they then form the base and closed up near all-time highs.
Company Profile
PetIQ, Inc. develops, manufactures, and distributes pet medications, and health and wellness products for dogs and cats in the United States, Canada, and Europe.
It offers pet prescription medications, including products for arthritis, thyroid, and diabetes and pain treatments, as well as heartworm preventatives, antibiotics, and other specialty medications.
Over-the-counter medications and supplies, such as flea and tick control products in various forms comprising spot on treatments, chewables, and collars; and health and wellness products consisting of specialty treats and other pet products, which include dental treats and nutritional supplements.
The company provides its products primarily under the VetIQ, PetAction Plus, Advecta, PetLock Plus, and TruProfen brands.
It sells its products through distributors as well as through retail stores, including approximately 40,000 retail pharmacy locations.
PetIQ, Inc. was founded in 2010 and is headquartered in Eagle, Idaho. -YahooFinance
