Why PetMed Express Shares Are Sinking Today
Shares of PetMed Express (NASDAQ: PETS) were sinking 16.4% as of 11:24 a.m. EDT on Monday. The decline came after the pet pharmacy reported its fiscal 2021 first-quarter results before the market opened. PetMed delivered strong revenue and earnings growth, but the company's earnings of $0.39 per share narrowly missed the consensus analysts' estimate of $0.40.
PetMed shares trade at nearly 27 times expected earnings. The animal healthcare stock came into this week up more than 70% year to date. This combination of a steep valuation and an impressive year-to-date gain appears to have increased investors' expectations. Any miss -- even a small one -- was enough to cause a pretty large tumble.
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Source Fool.com
