Petco (WOOF) Q2 Earnings Report Preview: What To Look For

Pet-focused retailer Petco (NASDAQ:WOOF) will be reporting earnings tomorrow afternoon. Here’s what to look for.

Petco beat analysts’ revenue expectations by 1.1% last quarter, reporting revenues of $1.53 billion, down 1.7% year on year. It was a very strong quarter for the company, with optimistic earnings guidance for the next quarter and an impressive beat of analysts’ earnings estimates.

Is Petco a buy or sell going into earnings? Read our full analysis here, it’s free.

This quarter, analysts are expecting Petco’s revenue to be flat year on year at $1.52 billion, slowing from the 3.4% increase it recorded in the same quarter last year. Adjusted loss is expected to come in at -$0.03 per share.

The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Petco has missed Wall Street’s revenue estimates twice over the last two years.

Looking at Petco’s peers in the consumer retail segment, some have already reported their Q2 results, giving us a hint as to what we can expect. National Vision delivered year-on-year revenue growth of 4.6%, meeting analysts’ expectations, and Leslie's reported a revenue decline of 6.8%, in line with consensus estimates. National Vision traded down 21.7% following the results while Leslie's was up 14.5%.

Read our full analysis of National Vision’s results here and Leslie’s results here.

Investors in the consumer retail segment have had steady hands going into earnings, with share prices flat over the last month. Petco is up 29.3% during the same time and is heading into earnings with an average analyst price target of $3.2 (compared to the current share price of $2.96).

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