Pet-focused retailer Petco (NASDAQ:WOOF) will be reporting results tomorrow afternoon. Here’s what to look for.
Petco met analysts’ revenue expectations last quarter, reporting revenues of $1.52 billion, flat year on year. It was a mixed quarter for the company, with an impressive beat of analysts’ EPS estimates but EBITDA guidance for next quarter missing analysts’ expectations.
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 be flat year on year at $1.50 billion, in line with its flat revenue from the same quarter last year. Adjusted loss is expected to come in at -$0.03 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 twice over the last two years.
Looking at Petco’s peers in the specialty retail segment, some have already reported their Q3 results, giving us a hint as to what we can expect. National Vision delivered year-on-year revenue growth of 2.9%, meeting analysts’ expectations, and Tractor Supply reported revenues up 1.6%, in line with consensus estimates. National Vision traded down 4.8% following the results while Tractor Supply was also down 6.7%.
Read our full analysis of National Vision’s results here and Tractor Supply’s results here.
There has been positive sentiment among investors in the specialty retail segment, with share prices up 7.5% on average over the last month. Petco is up 18.1% during the same time and is heading into earnings with an average analyst price target of $3.86 (compared to the current share price of $5.22).
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