Once these most recent quarterly results are finalized, they will be run through TheStreet.com Ratings' model and our ratings will be adjusted accordingly. To keep up to date on all of our ratings, visit TheStreet.com Ratings Screener. PetSmart ( PETM) reported on March 4, 2009 that its Q4 FY08 earnings rose 4.0% on higher revenue. Net income increased to $78.39 million or $0.62 per share from $75.40 million or $0.59 per share in Q4 FY07. The latest quarterly earnings beat the consensus estimate of $0.59 per share. Revenue increased 2.3% to $1.36 billion from $1.33 billion, driven by a 3.0% increase in comparable store sales. Merchandise sales rose 1.9% to $1.23 billion from $1.21 billion, whereas pet services revenue jumped 6.9% to $130.73 million from $122.25 million in Q4 FY07. Gross margin deteriorated 112 basis points to 30.53% from 31.65% due to a 4.0% increase in the cost of sales. However, operating margin improved 62 basis points to 10.45% from 9.83% as a result of a 0.62% decline in total operating, general, and administrative expenses. PetSmart opened 8 new stores and closed 3 stores, taking the total store count to 1,112 from 1,008 in Q4 FY07. The company paid a quarterly cash dividend of $0.03 per share and recalled seven of its Great Choice Dog Biscuit products that contain peanut paste made by the Peanut Corporation of America. FY08 net income declined 25.5% to $192.67 million or $1.52 per share from $258.68 million or $1.95 per share in FY07 as the prior year included a $95.36 million gain on the sale of assets. Annual revenue rose 8.4% to $5.07 billion from $4.67 billion, driven by a 3.8% increase in comparable store sales. PetSmart expects FY09 EPS of $1.40 to $1.50 and expects sales growth in the mid-to-high-single digits. Comparable store sales growth is projected in the low-single digits while services sales growth is projected in the mid-to-high-single digits. New store additions are projected between 40 and 42 on anticipated capital expenditure of $115.00 million to $125.00 million.