Petco (WOOF) Q3 Earnings Report Preview: What To Look For

Jabin Bastian /
2023/11/28 2:02 am EST

Pet-focused retailer Petco (NASDAQ:WOOF) will be reporting earnings tomorrow before the bell. Here's what you need to know.

Last quarter Petco reported revenues of $1.53 billion, up 3.4% year on year, in line with analyst expectations. It was a weaker quarter for the company, with a miss of analysts' earnings estimates.

Is Petco buy or sell heading into the earnings? Read our full analysis here, it's free.

This quarter analysts are expecting Petco's revenue to grow 0.9% year on year to $1.51 billion, slowing down from the 4% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.02 per share.

Petco Total Revenue

Majority of analysts covering the company have reconfirmed their estimates over the last thirty days, suggesting they are expecting the business to stay the course heading into the earnings. The company only missed Wall St's revenue estimates once over the last two years, and has on average exceeded top line expectations by 1.8%.

Looking at Petco's peers in the consumer retail segment, some of them have already reported Q3 earnings results, giving us a hint of what we can expect. Tractor Supply delivered top-line growth of 4.3% year on year, missing analyst estimates by 1.7% and National Vision reported revenues up 6.6% year on year, exceeding estimates by 1.1%. Tractor Supply traded down 6.2% on the results, and National Vision was flat on the results.

Read our full analysis of Tractor Supply's results here and National Vision's results here.

There has been positive sentiment among investors in the consumer retail segment, with the stocks up on average 10.3% over the last month. Petco is up 9.6% during the same time, and is heading into the earnings with analyst price target of $6.3, compared to share price of $3.78.

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The author has no position in any of the stocks mentioned.