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This Stock Just Beat the StreetOne company that recently beat the Street is one that I've followed for quite some time. Although no company is recession-proof, I always thought this business was more recession-resistant than others. The company I'm referring to is PetMed Express, Inc. (NASDAQ/PETS). This business, founded in 1996, is one of America's largest pet pharmacies using a direct business model. The company delivers prescription and non-prescription pet medications, as well as health and nutritional supplements for both small and large animals, directly to the consumers through its 1-800-PetMeds toll-free number and on the Internet through its web site at www.1800PetMeds.com. PetMed just announced its financial results for its third fiscal quarter ended December 31, 2008. The numbers beat consensus Wall Street estimates for both earnings and revenues. According to the company, its revenues in its latest quarter grew to over forty-three million dollars, up about 16% from revenues of more than thirty-seven million dollars generated in the same quarter last year. Net income came in at $4.9 million, or $0.21 per diluted share, as compared to net income of $4.4 million, or $0.18 per diluted share, for a gain of about 17%. PetMed reported that it acquired some 154,000 new customers in its latest quarter and that it repurchased approximately 336,000 shares of its own common stock for $4.6 million. The business increased its cash position and shareholders' equity substantially, and finished the quarter without any material debt to speak of. I've always admired this business because of its ability to deliver solid and consistent growth, while providing a much-needed service to customers. For too long, veterinarians had a monopoly on animal medications and treatments and the markups were substantial. Using a direct business model, PetMed has been able to deliver the same products as veterinarians at a lower price and without you having to leave the comfort of your own home. In my view, this business has already experienced its major growth curve, and its financial results indicate that its rate of expansion is slowing. With the economy in recession, it is nice to see a company deliver respectable business growth that has beaten Wall Street's expectations. Profit Confidential --- http://www.profitconfidential.com/ LOMBARDI PUBLISHING CORPORATION News, Analysis, and Information Services Since 1986. One Million Customers in 141 Countries. Lombardi Publishing Corporation Financial Publications Division 350 Fifth Avenue, Suite 3304 New York, NY 10118-3304 --- Copyright 2008; Lombardi Publishing Corporation. All rights reserved. No part of this e-newsletter may be used or reproduced in any manner or means, including print, electronic, mechanical, or by any information storage and retrieval system whatsoever , without written permission from the copyright holder. Source: Free Articles from ArticlesFactory.com
ABOUT THE AUTHORMitchell Clark, B. Comm., Senior Editor at Lombardi Financial, specializes in small-cap stocks. He’s the editor of a variety of popular Lombardi Financial newsletters, such as Penny Stock Reporter, Micro-Cap Stocks, and Monster Profits. Mitchell, who has been with Lombardi Financial for eleven years, is currently authoring a book on how to pick small-cap stocks for maximum profits. Prior to joining Lombardi, Mitchell was a stock broker for a division of one of the largest financial institutions in North America.
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