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%.
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