Petco Stock Surges Pre-Market After Q3 Earnings: Retail Turns Extremely Bullish

synopsis

Petco Health & Wellness Co. ($WOOF) stock was up more than 20% in the pre-market session on Friday after the pet retailer posted better-than-expected third-quarter earnings, lifting retail sentiment.

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, according to Stocktwits data.

Comparable sales were up 1.8% year-over-year. Its adjusted net loss narrowed to $6.5 million from $14.5 million in the same period last year.

Retail sentiment turned ‘extremely bullish’ (92/100) from ‘bearish’ (42/100) a week ago while message volumes climbed to the ‘extremely high’ zone.

"Our third quarter results demonstrate the meaningful progress we're making to strengthen our retail fundamentals to drive sustainable, profitable growth," said Joel Anderson, Petco's CEO said in a statement.

"While there is more work to do, our improving results increase our conviction that we are on the right path to position Petco to win long-term. Our entire organization is focused on driving profitability and free cash flow, and I'm confident we're set up for a solid finish to 2024."

For fiscal Q4 2024, the company expects adjusted EPS to be between $0.00 and $0.02, and net revenues of around $1.55 billion.

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

Last month, Petco named Joe Venezia Chief Revenue Officer.

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

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