Petco Health & Wellness (WOOF) Reports Q1 Loss, Misses Revenue Estimates

Financial Performance - Petco Health & Wellness reported a quarterly loss of $0.01 per share, better than the Zacks Consensus Estimate of a loss of $0.02, and an improvement from a loss of $0.04 per share a year ago, indicating a 50% earnings surprise [1] - The company posted revenues of $1.49 billion for the quarter ended April 2025, slightly missing the Zacks Consensus Estimate by 0.01%, and down from $1.53 billion year-over-year [2] - Over the last four quarters, Petco has surpassed consensus EPS estimates two times and topped revenue estimates only once [2] Stock Performance and Outlook - Petco shares have declined approximately 6.6% since the beginning of the year, contrasting with the S&P 500's gain of 1.5% [3] - The company's earnings outlook will be crucial for future stock performance, with current consensus EPS estimates at $0.01 for the coming quarter and $0.12 for the current fiscal year [4][7] Industry Context - The Retail - Miscellaneous industry, to which Petco belongs, is currently ranked in the top 15% of over 250 Zacks industries, suggesting a favorable environment for stock performance [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5]