Why is Petco stock dropping? Petco Health and Wellness Company (NASDAQ:WOOF) fell 13.27% after the retailer’s Q3 earnings report disappointed. Investors appear to have overlooked the earnings beat and guidance lift to focus on the margin pressures in play.
Is Petco stock a good buy?
Petco Health and Wellness Company, Inc. may be undervalued. Its Value Score of A indicates it would be a good pick for value investors. The financial health and growth prospects of WOOF, demonstrate its potential to outperform the market. It currently has a Growth Score of B.
Is Petco a profitable company?
Thanks to a successful year, the pet retailer turned profitable. Profits are soaring for the pet retailer Petco Health and Wellness (WOOF 1.60%). The company reported fourth-quarter and full-year 2021 results on March 8, and they were an inflection point.
Is WOOF stock a buy?
Out of 7 analysts, 1 (14.29%) are recommending WOOF as a Strong Buy, 4 (57.14%) are recommending WOOF as a Buy, 2 (28.57%) are recommending WOOF as a Hold, 0 (0%) are recommending WOOF as a Sell, and 0 (0%) are recommending WOOF as a Strong Sell. What is WOOF's earnings growth forecast for 2022-2023?
How is Petco doing financially?
Petco in particular experienced an 11% net sales increase during 2020 and an 18% year over year increase on top of that in 2021. The retailer also swung to a profit last year, of $159.8 million, after years of losses.
How much money did Petco make in 2021?
$5.8 billionThe pet retailer reported “record” revenue and profitability for the full year: In fiscal 2021, Petco's net revenue increased 18% year over year to $5.8 billion, with comps growing 19%. Net income was $159.8 million from a net loss of $31.7 million last year.
Is Petco American owned?
Petco Health and Wellness Company, Inc. is an American pet retailer with corporate offices in San Diego and San Antonio.
Does Woof stock pay dividends?
WOOF does not currently pay a dividend.
Is Woof shorted?
Short interest is the volume of Petco Health and Wellness shares that have been sold short but have not yet been covered or closed out. As of May 15th, traders have sold 18,310,000 shares of WOOF short. 12.18% of Petco Health and Wellness' shares are currently sold short.
What is the stock symbol for PetSmart?
PETMPetSmart Inc (PETM)
Which is better Petco or PetSmart?
Edge: PetSmart Both Petco and PetSmart offer plenty of comprehensive packages to keep your pet looking its best, but the extensive training and then you will certification required by PetSmart is much more likely to result in a positive experience for you and your pet every time you use their service.
Is Petco a million dollar company?
Petco is privately owned and was established in 1965. Today, the pet specialty firm is based in San Diego, California and employs about 25,000 people throughout the country....CharacteristicRevenue in million U.S. dollars2019/202,977.72018/193,021.42017/182,819.92016/172,751.22 more rows•Jan 14, 2022
Is Petco privately owned?
2006 - Petco grows to 800 stores in 49 states and more than 18,000 associates nationwide. The company is taken private again by private equity investment groups led by TPG.
Summary
WOOF reported its Q3 results, which beat expectations, but the shares sold off with the market focusing on cost pressures adding to uncertainties.
Why Did Petco Stock Drop?
Petco's Q3 non-GAAP EPS of $0.20 beat the consensus expectations by $0.02. Similarly, the revenue of $1.44 billion climbed 15% year-over-year and was also ahead of estimates.
WOOF Management Guidance
Considering the year-to-date results heading into Q4, Petco is slightly boosting its full-year revenue guidance to a range between $5.725 billion and $5.775 billion compared to a prior midpoint estimate of $5.65 billion. Similarly, the adjusted EBITDA target is increased to a range of around $580 million, up from the prior midpoint of $570 million.
WOOF Stock Forecast
Several high-level themes are supporting the growing demand for pet products in what remains a highly segmented industry scattered across small independent stores and private veterinary practices.
Is Petco Stock Overvalued?
Based on the company guidance for EPS and EBITDA, WOOF is trading at a forward P/E of around 23x and also around 13x on EV to forward EBITDA. With Chewy, Inc. still in a high-growth phase and just reaching profitability leading to negligible earnings this year, PetsMed Express, Inc.
Is WOOF Stock A Buy, Sell, Or Hold Now?
The first takeaway here is that the company is "fine" based on the combination of ongoing profitability, steady growth, and an improving balance sheet. We rate WOOF as a hold, with a year ahead price target of $20.00 based on an expectation of continued volatility and poor sentiment until the trends for 2022 become clear.
Why did Petco's gross margins decline?
However, the company's gross margins did decline slightly due to increased costs related to the COVID-19 pandemic. For example, Petco had to supply masks to its store employees and take extra precautions in sanitizing its stores. All this underlines the advancements Petco has made over the last three years.
How much has Petco invested in the last 3 years?
All this underlines the advancements Petco has made over the last three years. The company has invested over $300 million total and $150 million of that just in the past three years in building out its digital and e-commerce platforms.
How much did Petco go public?
This time, Petco managed to go public at an $18-per-share price , which allowed the company to pull in $817 million from the offering. In the company's IPO prospectus, it noted that it intends to use most of the proceeds to repay debt obligations. This makes sense given the company's private equity history.
Why do private equity investors raise money?
This makes sense given the company's private equity history. Private equity investors tend to load up balance sheets with as much debt as possible to increase their returns, and raising money from the public market is a great way to repay those debts while raising capital at a high valuation. Image source: Getty Images.
Is Petco going public?
Petco's stellar performance in 2020 made for a great case to go public. Sales were up 11%, driven by growth in same-store sales along with segments such as e-commerce and vet services. In fact, the company was able to generate enough cash flow to cut its debt load in half during the year from $3.3 billion at the start of 2020 to $ 1.7 billion by the end of the year.
PTCO Target Price
PTCO price target in 14 days: 4.724 USD* upside and 2.075 USD* downside. (Highest and lowest possible predicted price in a 14 day period)
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