Pet-focused retailer Petco (NASDAQ: WOOF) will be announcing earnings results this Thursday after market hours. Here’s what to expect.
Petco met analysts’ revenue expectations last quarter, reporting revenues of $1.49 billion, down 2.3% year on year. It was a strong quarter for the company, with a beat of analysts’ EPS estimates and an impressive beat of analysts’ EBITDA 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 2.1% year on year to $1.49 billion, a deceleration from its flat revenue in the same quarter last year. Adjusted earnings are expected to come in at $0.02 per share.
The majority of analysts covering the company have 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 Q2 results, giving us a hint as to what we can expect. National Vision delivered year-on-year revenue growth of 7.7%, beating analysts’ expectations by 3.5%, and Tractor Supply reported revenues up 4.5%, topping estimates by 0.9%. National Vision traded down 2.7% following the results while Tractor Supply’s stock price was unchanged.
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 2.4% on average over the last month. Petco is down 5.9% during the same time and is heading into earnings with an average analyst price target of $3.68 (compared to the current share price of $3.21).
Today’s young investors won’t have read the timeless lessons in Gorilla Game: Picking Winners In High Technology because it was written more than 20 years ago when Microsoft and Apple were first establishing their supremacy. But if we apply the same principles, then enterprise software stocks leveraging their own generative AI capabilities may well be the Gorillas of the future. So, in that spirit, we are excited to present our Special Free Report on a profitable, fast-growing enterprise software stock that is already riding the automation wave and looking to catch the generative AI next.
StockStory is growing and hiring equity analyst and marketing roles. Are you a 0 to 1 builder passionate about the markets and AI? See the open roles here.
