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  "documentTitle": "PetIQ, Inc. (PETQ)",
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      "text": "Implies $100-125M sales estimate for services segment",
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      "text": "Now, 75% of what's now a $450 million to $500 million number is a significant number and a significant increase. That leaves 25% of the business to be service-related...",
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      "text": "Service segment guidance walked back to $80-95M three months later",
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      "text": "We find it extremely curious that management could be so off in its estimates for VIP sales. How could management have such little visibility into a stable, diversified, steadily-growing business?",
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      "text": "PETQ Service Sales / Legacy VIP Sales: Actual vs. Guidance vs. Initial Estimate",
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      "text": "Service segment revenue: $78M",
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      "text": "VIP sales ultimately grew by only 9% in FY18 off their FY17 base of $72M. Note that this growth figure includes growth from new Walmart wellness centers...",
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      "text": "When PetIQ first purchased VIP, management implicitly suggested on its March Q4 FY17 earnings call that the new services segment would contribute $100-125M of sales on an annual basis...",
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      "kind": "quote",
      "text": "\"Now, 75% of what's now a $450 million to $500 million number is a significant number and a significant increase. That leaves 25% of the business to be service-related in that segment that we haven't been in. We're not prepared yet to put any specific numbers out.\" — McCord Christensen – CEO, PetIQ",
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      "text": "Wide Disconnect Between Initial Sales Estimate And Eventual Guidance, And Disappointing Growth",
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