Petco, a pet retailer, will report its quarterly financial report this week. During the last reporting period, it gained $1.49 billion (a drop of 0.5% per annum and 1% below analyst forecasts). Overall, that quarter turned out to be quite unsuccessful for the company: it was unable to meet expectations for most of its key indicators. LBLV experts paid special attention to the strong decline in GAAP profits caused by a one-time charge of $1.22 billion.
Experts expect that in a new report, Petco will report an increase in revenue by 3.4% per annum, to $1.63 billion. During the same quarter a year ago, the company increased this figure by 4.2%. Her estimated adjusted profit is $0.02.
Most of the experts who follow Petco's business have confirmed estimates for the last 30 days. They believe that the company will continue on its course to increase profitability. Over the past couple of years, there have been two cases when its financial report turned out to be worse than analyst expectations.
Over the past month, Petco shares have fallen slightly in price
Some of the company’s rivals have already reported for the fourth quarter, which allows us to assess its prospects. In particular, Tractor Supply reported a decrease in revenue by 8.6% year-on-year, which is 0.5% lower than experts expected. At the same time, National Vision reported an increase in revenue by 8% per annum (1.4% above forecasts). As a result, the quotes of the first company jumped by 1%, and the second remained the same, reports lblv.com.
Market players investing in companies from the specialized retail trade segment remained in the black over the last month: average quotes growth amounted to 1.1%. At the same time, Petco securities fell in price by 1.5%.
Dmitry Rodin, financial analyst at LBLV
