Petco Health and Wellness Co Inc (WOOF)

Shares of Petco Health and Wellness (WOOF) dropped by 28.91% from $3.84 to $2.73 in the trading on Wednesday, November 29, 2023. The reason why WOOF is down today is due to the disappointing Q3 earnings report and the company's full-year profit outlook, both of which failed to meet expectations.

• Q3 Revenue Decline and Business Segment Performance: Petco (WOOF) reported a 0.5% decrease in revenue for Q3 year-over-year, amounting to $1.49 billion. While there was a 1.8% increase in its consumables business and a substantial 15.0% surge in services and other business segments, these gains were offset by an 8.8% decline in the supplies and companion animal business compared to the same period the previous year.
• Bottom-Line Performance: The company's bottom-line performance was notably weak. It reported an adjusted EBITDA of $72.2 million, which was significantly lower than the $120.2 million recorded in the same period a year ago. Earnings per share reached -$0.05, falling short of the consensus estimate of $0.02 and the $0.11 achieved in the prior year.
• Guidance and Market Reaction: Looking ahead, Petco Health and Wellness Company (WOOF) anticipates full-year revenue of $6.15 billion to $6.28 billion, falling short of the $6.25 billion consensus estimate. The company also adjusted its EPS outlook to approximately $0.08, compared to the previously projected range of $0.24 to $0.30 and the consensus estimate of $0.27.

Petco Health and Wellness Company, Inc. (WOOF) was down, falling 20.64% to $5.19 after the company reported second-quarter results, but warned its full-year numbers would come in below expectations. Investors were in no mood to stay and as a result the stock is rolling over.

https://www.fool.com/investing/2023/08/24/why-petco-stock-is-falling-today/

WOOF experienced a significant drop in its stock price today following the release of its fourth-quarter earnings report. Unfortunately, the report indicates that the company's earnings per share are expected to decrease, suggesting a decline in both growth and profitability. This is particularly concerning considering that fiscal 2023 has an extra week of sales compared to the previous year. This suggests that the company may be facing challenges that are negatively impacting its ability to generate revenue and profits. It's possible that the company is facing increased competition, rising costs, or other operational challenges that are making it difficult to maintain its previous levels of growth and profitability. If you're a shareholder in WOOF, it's important to closely monitor the company's financial performance and consider whether it still makes sense to hold onto your shares. You may also want to consult with a financial advisor to help you make informed decisions about your investments.