DB Alex. Brown Raises Estimates on PetCo

Analyst Dan Wewer thinks Wall Street will reward the pet supply retailer for its consistently robust sales track record

Deutsche Bank Alex. Brown raised estimates on PetCo (PETC ).

Analyst Dan Wewer says first quarter earnings per share beat his estimate by $0.03. He sees $0.14 second quarter EPS, raised his $0.81 fiscal 2003 (Jan.) estimate to $0.84, and upped the $1.00 fiscal 2004 estimate to $1.02.

Wewer notes comparable sales, or sales at stores open for more than one year, grew 9.3% on top of a 7.7% gain a year ago. He thinks the Street will reward PetCo for such a consistently robust comps track record.

Wewer also says the company achieved a number of important milestones that support his strong buy rating including expanding operating margins, better inventory management, rising return on investment capital, and a significantly strengthened balance sheet.

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