Pet-focused retailer Petco (NASDAQ: WOOF) will be announcing earnings results this Wednesday afternoon. Here’s what to expect.
Petco met analysts’ revenue expectations last quarter, reporting revenues of $1.52 billion, down 2.4% year on year. It was a very strong quarter for the company, with a solid beat of analysts’ EBITDA estimates and EBITDA guidance for next quarter exceeding analysts’ expectations.
Is Petco a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting Petco’s revenue to be flat year on year, improving from the 2.3% decrease it recorded in the same quarter last year.
The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. Petco has missed Wall Street’s revenue estimates multiple times over the last two years.
Looking at Petco’s peers in the consumer retail segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Leslie's delivered year-on-year revenue growth of 4.3%, beating analysts’ expectations by 12.9%, and Tractor Supply reported revenues up 3.6%, falling short of estimates by 1.1%. Leslie's traded up 145% following the results while Tractor Supply was down 13.1%.
Read our full analysis of Leslie’s results here and Tractor Supply’s results here.
There has been positive sentiment among investors in the consumer retail segment, with share prices up 2.6% on average over the last month. Petco is up 7.9% during the same time and is heading into earnings with an average analyst price target of $3.52 (compared to the current share price of $3).
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