Petco Health and Wellness Company’s latest financial results came in above expectations on the top and bottom line but that has failed to turn into momentum for its stock.
Shares of the pet and pet owner health and wellness company fell 1.8% to US$10 after it reported its first quarter results before the opening bell on Wednesday.
For 1Q, Petco posted adjusted earnings per share (EPS) of $0.05, down from $0.14 in the year-ago quarter, but ahead of the consensus analyst expectation of $0.05.
Revenue of $1.56 billion exceeded expectations of $1.48 billion, per Zacks Consensus Estimate. This was an increase of 5.4% driven by comparable sales growth of 5.1%.
Additionally, as expected by UBS analysts, the company reiterated its full-year 2023 guidance of revenue between $6.150 billion to $6.275 billion and adjusted EPS of $0.40 to $0.48.
However, the company posted a net loss of $1.9 million compared to net income of $24.7 million in the year-ago quarter, a decline of $26.6 million.
"We continue to execute on our strategy amidst the current environment, delivering our 18th consecutive quarter of comp sales growth in the first quarter, driven by the ongoing strength in consumables and record performance in our services business," Petco CEO Ron Coughlin said in a statement.
“Looking ahead, we are focused on what's within our control and capitalizing on the secular trends of the resilient pet category to drive long-term, profitable growth."
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