Petco Health and Wellness (NASDAQ:WOOF) stock is falling following the release of its earnings report for the second quarter of 2023.
The bad news for WOOF stock comes from a guidance update in its latest earnings report. The company says it now expects 2023 adjusted earnings per share to range from 24 cents to 30 cents alongside revenue between $6.15 billion and $6.275 billion.
That doesn’t look good for Petco Health and Wellness when compared to Wall Street’s 2023 estimates. Those include adjusted EPS of 42 cents and revenue of $6.31 billion. Not even at the high end of WOOF’s guidance would it be able to match analysts’ expectations.
Brian LaRose, Chief Financial Officer of Petco Health and Wellness, said the following about the revised guidance.
“In Q2, we delivered solid top line results and strong free cash flow. That said, the shift in consumer spending and pressures on our discretionary business mean we’re revising our guidance accordingly. Looking ahead, we remain focused on debt paydown and cash flow, both of which will be supported by our productivity initiatives in addition to tightly controlled expense management.”
WOOF Q2 Results
The lackluster guidance is pulling down an otherwise solid earnings report from Petco Health and Wellness. Adjusted EPS of 6 cents matched Wall Street estimates. Likewise, its revenue of $1.53 billion just barely beat analysts’ estimate of $1.52 billion.
Roughly 1 million shares of WOOF stock have traded hands as of Thursday morning. That’s closing in on its daily average trading volume of about 2.8 million shares. It also has the stock down 18.4% as of this writing.
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On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
