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Sentiment on Stocktwits inched up in the bullish zone on Friday
Shares of Petco Health and Wellness Co. have declined more than 1% in the past five days ahead of the pet retailer’s fiscal fourth-quarter results.
Petco is expected to report earnings on Wednesday after the market closes. Wall Street expects Petco to post $1.56 billion in revenue for Q4.
Last week, Citi lowered the firm's price target to $2.75 from $5 with a ‘Neutral’ rating ahead of the Q4 earnings, Fly reported citing the firm.
According to Citi, its estimates are "more/less in-line with the street" for Q4, said the report, which noted the firm lowered 2025 estimates to reflect weaker top-line trends and more back half-weighted earnings before interest, taxes, depreciation and amortization or EBITDA improvement.
For fiscal Q4 2024, Petco stated it expects adjusted EPS to be between $0.00 and $0.02, and net revenues of around $1.55 billion.
Sentiment on Stocktwits inched up in the ‘bullish’ zone on Friday Message volume was in the ‘low’ zone.
One watcher noted the competition the company faces from online retailers.
For the third quarter, Petco posted better-than-expected earnings. Petco posted an earnings loss of $0.02 per share, slightly better than an estimated loss of $0.04. Revenues came in at $1.51 billion versus the estimated $1.5 billion.
Comparable sales were up 1.8% year-over-year and adjusted net loss narrowed to $6.5 million from $14.5 million in the same period last year.
Petco announced major changes to its leadership team in February aimed at operational improvements and helping it return to profitable growth, naming Sabrina Simmons, former CFO at Gap as its finance chief.
The company also named Michael Romanko, formerly chief merchandising and marketing officer at Five Below Inc., as chief customer and product officer. A former 7-Eleven EVP and chief merchandising officer, Jack Stout, was named chief merchandising officer at Petco.
Petco stock is down 11% year-to-date.
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