The Miami Entrepreneur

Petco stock jumps after revenue rises above expectations while profit falls in line

Shares of Petco Health & Wellness Co. Inc. bounded 6.5% higher in premarket trading Wednesday, after the pet care company reported fiscal third-quarter profit that matched expectations and revenue that beat, but trimmed its full-year earnings outlook. Net income for the quarter to Oct. 29 dropped to $19.9 million, or 7 cents a share, from $52.8 million, or 20 cents a share, in the year-ago period. Excluding nonrecurring items, adjusted earnings per share slipped to 16 cents from 20 cents, but was in line with the FactSet consensus. Revenue grew 4.0% $1.50 billion, topping the FactSet consensus of $1.49 billion. Cost of sales rose more than sales, up 6.5% to $903.5 million, as gross margin contracted to 39.8% from 41.2%. For the full fiscal year, the company affirmed its previously provided revenue guidance of $5.975 billion to $6.05 billion, but lowered its adjusted EPS guidance range to 75 cents to 79 cents from 77 cents to 81 cents. The stock, which closed Tuesday at $9.49, or just above the Oct. 21 record-low close of $9.36, has tumbled 36.5% over the past three months through Tuesday, while the S&P 500 has eased 0.7%.

Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.

Previous post United Airlines invests undisclosed sum in sodium ion battery maker Natron Energy
Next post Economic Report: Chicago factory activity falls deeper into contraction territory in November