VCA on Thursday reported third-quarter net income of $32 million (38 cents per share), up 19 percent from $27 million (32 cents) from the same period a year earlier, beating analysts’ expectations of 37 cents per share.

Revenue for the Los Angeles-based pet and animal clinic operator jumped nearly 22 percent to $306 million, also ahead of Wall Street’s predictions of $301 million, according to a Thomson Financial poll.

During the quarter, sales in its laboratory segment rose 12 percent while animal hospital revenues rose 25 percent, which was helped by the company’s acquisition of Healthy Pet Corp., which was announced in June.

Shares in VCA dropped 4.2 percent, $1.86, to $42.36 in afternoon trading Thursday. Analysts said the drop was due to profit taking; shares are up 37 percent so far this year and also hit a 52-week high of $44.79 on Tuesday.