Animal health products and services distributor PetIQ Inc. (PETQ) has published a report on their fourth-quarter results. The PetIQ platform managed to improve on specific metrics despite the pandemic.
As a result of the pandemic, almost all veterinary clinics closed. Still, at the same time, pet products enjoyed a high sales tally, with many Americans forced to have a pet due to forced self-isolation. An entire industry has benefited from this. American Pet Products Manufacturers Association projections show that the total spending in the pet industry is expected to rise by six billion dollars to $ 109 billion by 2021. A total of 6.4 % of PetIQ’s revenue grew year-on-year in the fourth quarter.
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Gross profit for the quarter was $28 million, which is almost 40% higher than a year ago. At the moment, all of PetIQ’s 126 health centres and veterinary clinics are functioning. Therefore sales of services fell 1.5 % YoY in the fourth quarter but grew 60 % compared to the third quarter. The company still does not make a revenue forecast for its services segment for the current period because it believes that the coronavirus will negatively impact.
Meanwhile, PetIQ plans to open 130 to 170 animal hospitals soon in the US. PetIQ is also expected to see additional revenue and profit growth through the acquisition of Capstar, which manufactures a line of over-the-counter oral products for treating insect parasites for dogs and cats.
In this way, PetIQ is benefiting from the rising cost of pets in the United States. Wellness centers in over 120 locations in the US provide services to more than 1.2 million pets at 3,400 clinics, over 70,000 mobile clinics, and more than 41 states. Healthcare during the height of quarantine became extremely important during PetIQ’s telemedicine services.
Last check-in aftermarket trading, PetIQ Inc. (PETQ) was up 0.58% to trade at $45.12. On Monday, shares of PetIQ Inc. rose 3.87% to close the day at $44.86. There were 0.57 million shares traded, which is higher than the average daily volume of 322K over three months. A stock’s price oscillated between $43.30 and $45.25 during the trading session. The profits per share ratio for the company was -3.10. Over the past five sessions, PETQ’s shares gained a total of 14.61%, while they moved 27.92% over the past month but have gained 16.67% year-to-date. Additionally, the stock is currently trading at an RSI of 80.06, which means the stock’s 50-day moving average is above the 200-day moving average of $33.59.