Petco Health & Wellness (WOOF) Reports Q3 Loss, Tops Revenue Estimates

Company Performance - Petco Health & Wellness reported a quarterly loss of $0.02 per share, which was better than the Zacks Consensus Estimate of a loss of $0.03, and an improvement from a loss of $0.05 per share a year ago, indicating an earnings surprise of 33.33% [1] - The company posted revenues of $1.51 billion for the quarter ended October 2024, surpassing the Zacks Consensus Estimate by 0.92% and showing an increase from $1.49 billion in the same quarter last year [2] - Over the last four quarters, Petco has exceeded consensus EPS estimates two times and topped consensus revenue estimates three times [2] Stock Performance - Petco shares have increased approximately 59.8% since the beginning of the year, significantly outperforming the S&P 500's gain of 27.6% [4] - The current consensus EPS estimate for the upcoming quarter is $0.03 on revenues of $1.58 billion, while for the current fiscal year, the estimate is -$0.06 on revenues of $6.13 billion [8] Industry Outlook - The Zacks Industry Rank indicates that the Retail - Miscellaneous sector, to which Petco belongs, is currently in the bottom 30% of over 250 Zacks industries, suggesting potential challenges ahead [9] - Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions, which could impact Petco's stock performance [6]