Petco Stock In Focus Ahead of Q3 Earnings: Retail’s Bullish

Petco Health & Wellness Co. ($WOOF) stock was down nearly 3% on Thursday ahead of the pet products retailer’s third-quarter earnings, but retail sentiment turned bullish.

Wall Street analysts expect earnings per share to come in at -$0.04 on estimated revenues of $1.5 billion. Petco has beaten estimates thrice out of the last four quarters.

Recently, analyst firm Baird reiterated its ‘Neutral’ rating on the company and maintained its price target of $5.00.

The company has previously said it expects Q3 net revenues to be around $1.5 billion; and adjusted earnings before interest, taxes, and depreciation to be between $76 million and $80 million. Its guidance for adjusted EPS stands at -$0.03 to -$0.04.

Retail sentiment on Stocktwits has turned ‘bullish’ (67/100) from ‘bearish’ (43/100) a week ago.

In the second quarter, Petco met revenue consensus estimates. It posted net revenues of $1.52 billion, down 0.5% compared to the prior year. Overall, the quarter was a mixed bag. It beat estimates on EPS estimates but lowered guidance for the next quarter.

Last month, Petco named Joe Venezia Chief Revenue Officer.

One Stocktwits user’s analysis of the options market is expecting the stock to move more than 20% following its earnings report.

Petco stock is up 55% year-to-date.

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