Updated from 11:38 a.m. EDTPetsMart ( PETM), the pet store chain, said second-quarter earnings rose sharply, bolstered by rapid growth in the pet services business and effective cost-cutting measures. The Phoenix-based chain, which operates nearly 600 stores in North America, posted net income of $21.5 million, or 15 cents a share, compared with $2.8 million, or 2 cents a share, a year earlier. Analysts were expecting the company to earn 14 cents a share, according to research firm First Call/Thomson Financial. Revenue for the quarter came in at $651.5 million, up from $582.4 million last year. Comparable-store sales rose 11.4%. The company also raised guidance for the third quarter and full year 2002, saying it expects to earn 12 to 13 cents and 70 to 72 cents, respectively. Analysts were projecting 2002 earnings of 68 cents and a third-quarter profit of 10 cents. The shares closed up 39 cents, or 2.46%, to $16.25 on the Nasdaq.