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PetMed Express 2Q profit rises, but misses Street

The Associated Press

NEWS: PetMed Express Inc. said Monday that its second-quarter net income climbed 5 percent on increased reorders, higher online sales and lower operating expenses. But its profit fell short of Wall Street expectations, and the stock dropped in morning trading.

DETAILS: The pet pharmacy company said that its operating expenses declined to $12.7 million from $13 million mostly on lower advertising expenses. Reorder sales rose 5 percent to $48.9 million, while online sales climbed 7 percent to $47.9 million.

The average order size was $73, up from $72 a year earlier.

NUMBERS: The Pompano Beach, Fla. company earned $4.2 million, or 21 cents per share, for the three months ended Sept. 30. A year ago it earned $4 million, or 20 cents per share.

Revenue climbed 4 percent to $60.5 million from $58.1 million.

Analysts, on average, predicted earnings of 22 cents per share on revenue of $60 million, according to a FactSet survey.

STOCK: The shares dropped $1.61, or 9.6 percent, to $15.25 in morning trading. So far this year, it is up 52 percent.