Petco Health up after Q3 sales, profit beat, PT raises

Petco Health and Wellness

06/12/2024 15:54

(Updates)
    ** Shares of American pet retailer Petco Health and Wellness
 WOOF.O  rise as much as 28.4% at $6.29
        ** Shares at their highest since Aug. 2023, now up ~6%
  
    ** Co posted Q3 sales, profit beat after market close on
Thursday
    ** Reported Q3 revenue of $1.51 bln, vs. analyst estimates
of $1.50 bln, and adjusted loss per share of 2 cents vs.
estimates of a 4 cents loss - data compiled by LSEG
    ** However, co expects Q4 sales and profit below Street
expectations
    ** At least four brokerages raise PT on stock
    ** Brokerage Wedbush believes the Q4 outlook is
appropriately conservative given the dynamic environment
    ** Forecasts upside as WOOF's profit-first strategy is
showing signs of building margin improvement through supply
chain savings and operational efficiencies; raises PT to $6 from
$5.50
    ** Three of 13 brokerages rate the stock "buy" or higher,
nine "hold" and one "sell"; with a median PT of $5
    ** Up to Thursday's close, stock has risen 55% YTD

 (Reporting by Neil J Kanatt in Bengaluru)
 ((Neil.JKanatt@thomsonreuters.com;))