Pet-focused retailer Petco (NASDAQ:WOOF) will be announcing earnings results tomorrow after market hours. Here’s what to expect.
Petco met analysts’ revenue expectations last quarter, reporting revenues of $1.55 billion, down 7.3% year on year. It was a very strong quarter for the company, with EBITDA guidance for next quarter exceeding analysts’ expectations and a solid beat of analysts’ EPS estimates.
Is Petco a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Petco’s revenue to decline 1.9% year on year to $1.5 billion, in line with the 1.7% decrease it recorded in the same quarter last year. Adjusted loss is expected to come in at -$0.01 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Petco has missed Wall Street’s revenue estimates five times over the last two years.
Looking at Petco’s peers in the specialty retail segment, some have already reported their Q1 results, giving us a hint as to what we can expect. National Vision delivered year-on-year revenue growth of 5.7%, beating analysts’ expectations by 1.5%, and Leslie's reported a revenue decline of 6.1%, falling short of estimates by 4%. National Vision traded up 25.1% following the results while Leslie's was also up 4.5%.
Read our full analysis of National Vision’s results here and Leslie’s results here.
There has been positive sentiment among investors in the specialty retail segment, with share prices up 13.9% on average over the last month. Petco is up 19.9% during the same time and is heading into earnings with an average analyst price target of $3.63 (compared to the current share price of $3.67).
Here at StockStory, we certainly understand the potential of thematic investing. Diverse winners from Microsoft (MSFT) to Alphabet (GOOG), Coca-Cola (KO) to Monster Beverage (MNST) could all have been identified as promising growth stories with a megatrend driving the growth. So, in that spirit, we’ve identified a relatively under-the-radar profitable growth stock benefiting from the rise of AI, available to you FREE via this link.