Petco Health and Wellness (NASDAQ:WOOF) Releases Quarterly Earnings Results, Beats Estimates By $0.06 EPS

Petco Health and Wellness (NASDAQ:WOOF - Get Free Report) released its quarterly earnings results on Wednesday, September 2nd. The company reported $0.13 earnings per share for the quarter, beating the consensus estimate of $0.07 by $0.06, FiscalAI reports. The firm had revenue of $1.49 billion for the quarter, compared to analysts' expectations of $1.49 billion. Petco Health and Wellness had a return on equity of 3.44% and a net margin of 2.60%.During the same period in the prior year, the firm earned $0.05 EPS.

Here are the key takeaways from Petco Health and Wellness' conference call:

• Petco reported its second consecutive quarter of positive comparable sales, with Q2 comps up 0.6% and sales slightly higher year over year at $1.5 billion. Adjusted EBITDA was $122 million, or $115 million excluding a $6.8 million tariff refund, exceeding the company’s outlook.
• The national relaunch of Petco Perks drove point redemptions well above expectations, creating a mid-single-digit-million-dollar sales impact, particularly in services. Management says peak redemptions are behind the company, but expects the program’s personalization and loyalty benefits to become more meaningful in 2027.
• Management highlighted improving trends in consumables, cat products, veterinary services, and cross-channel shopping. Veterinary visits and doctor days grew double digits, while Autoship is now being introduced in stores and the company plans to resume opening new veterinary hospitals in 2027.
• Petco reaffirmed full-year guidance for sales ranging from flat to up 1.5% and adjusted EBITDA of $415 million to $430 million. Strong cash generation supported an additional $75 million voluntary debt repayment, bringing total debt paydown over the past nine months to $170 million.
• The company continues to face a soft dog category, store closures, and manageable but rising supply-chain costs, including fuel and freight pressure. Growth investments in new assortments, private-label products, remodeled stores, and fresh food are expected to build gradually rather than produce a near-term step-change.

Petco Health and Wellness Stock Performance

Petco Health and Wellness stock traded down $0.01 during trading on Monday, reaching $2.45. The company had a trading volume of 990,476 shares, compared to its average volume of 2,205,499. Petco Health and Wellness has a 52 week low of $2.24 and a 52 week high of $3.96. The firm's 50-day simple moving average is $2.70 and its 200 day simple moving average is $2.74. The firm has a market capitalization of $792.69 million, a price-to-earnings ratio of 24.55, a price-to-earnings-growth ratio of 2.22 and a beta of 1.53. The company has a current ratio of 0.90, a quick ratio of 0.39 and a debt-to-equity ratio of 1.21.

Insider Buying and Selling

In other news, insider Holly May sold 200,000 shares of the business's stock in a transaction dated Thursday, July 9th. The stock was sold at an average price of $2.54, for a total value of $508,000.00. Following the transaction, the insider directly owned 1,327,867 shares in the company, valued at $3,372,782.18. The trade was a 13.09% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. Insiders sold 450,000 shares of company stock worth $1,145,500 over the last quarter. 6.50% of the stock is owned by company insiders.

Wall Street Analysts Forecast Growth

Several research firms have recently weighed in on WOOF. BNP Paribas Exane lowered their price target on Petco Health and Wellness from $2.34 to $2.11 and set an "underperform" rating on the stock in a report on Thursday, September 3rd. UBS Group decreased their target price on Petco Health and Wellness from $4.00 to $3.50 and set a "neutral" rating on the stock in a report on Thursday, September 3rd. Robert W. Baird raised their target price on Petco Health and Wellness from $3.00 to $3.25 and gave the stock a "neutral" rating in a report on Thursday, September 3rd. Citigroup decreased their target price on Petco Health and Wellness from $4.00 to $3.25 and set a "neutral" rating on the stock in a report on Thursday, June 4th. Finally, Weiss Ratings raised Petco Health and Wellness from a "sell (d)" rating to a "sell (d+)" rating in a report on Tuesday, September 8th. One investment analyst has rated the stock with a Strong Buy rating, one has given a Buy rating, five have issued a Hold rating and two have assigned a Sell rating to the stock. Based on data from MarketBeat, the company has an average rating of "Hold" and an average price target of $3.42.

About Petco Health and Wellness

Petco Health and Wellness Company, Inc is a pet-focused retailer and services provider operating primarily in the United States and Puerto Rico. The company serves pet owners through a network of stores and digital channels, offering products and services for dogs, cats, small animals, birds, fish and reptiles.

Petco sells pet food, treats, supplies, toys, bedding, habitats and other everyday care products, including merchandise under its own brands such as WholeHearted, Reddy and EveryYay.