PetIQ Inc's (NASDAQ:PETQ) Q4 sales increased 19.7% Y/Y to $196.6 million, beating the consensus of $169.68 million, driven by growth in the Product and Services segments.
- The Product segment sales increased 17.8% to $170.9 million, benefiting from a robust and stronger than normal end to the flea and tick season with broad-based growth across all categories.
- The Services segment sales expanded 34.1% to $25.7 million, led by the reopening of wellness centers and mobile clinics compared to the prior year, despite the continued labor-related headwinds experienced in Q4 of 2021.
- Adjusted gross margin increased 130 basis points to 21.3%, reflecting a favorable product mix.
- The company reported an adjusted net loss of $(0.29) million compared to an adjusted net loss of $(1.0) million, an improvement of $0.7 million.
- Adjusted EBITDA was $15.3 million compared to $13.0 million, an increase of 17.6%.
- The company had 26 new wellness center openings in the fourth quarter of 2021.
- Guidance: For FY22, PetIQ expects sales of approximately $985 million, compared to the consensus of $981.82 million.
- The company forecasts adjusted EBITDA of roughly $100 million, +7.6% Y/Y.
- For Q1 FY22, the company expects sales of approximately $270 million, above the consensus of $261.51 million.
- It expects an adjusted EBITDA of about $28 million, representing a Y/Y increase of 4.1%.
- Price Action: PETQ shares closed 7.71% lower at $18.31 on Tuesday.
