PetSmart Lifts 3rd-quarter Earnings Outlook

PHOENIX (AP) — Shares of PetSmart Inc. climbed Thursday after the pet products retailer raised its third-quarter profit outlook because of better profit margins on products and lower-than-expected expenses.

Shares rose $2.02, or 8.6 percent, to $25.46 in morning trading.

The company now expects earnings between 25 cents and 29 cents for the third quarter and between $1.43 to $1.51 per share for the year. The PetSmart also expects sales at stores open more than a year to be "essentially flat" for the quarter.

Previously, the company forecast third-quarter net income between 20 cents to 24 cents per share for the third quarter. The company had also lowered its full-year forecast to between $1.37 and $1.45 per share from a prior range of $1.42 to $1.52.

On average, analysts polled by Thomson Reuters are expecting profit of 22 cents per share for the third quarter and $1.42 for the year.

The company is hosting an analyst meeting on Thursday.