Petco Health and Wellness (NASDAQ:WOOF) shares dropped more than 18% on Wednesday after the company reported its Q1 earnings results. While EPS of $0.06 and revenue of $1.56 billion came in better than the Street estimates of $0.05 and $1.5 billion, respectively, the company spooked investors by warning of a deteriorating consumer backdrop.
For the full 2024, the company expects EPS to be in the range of $0.40-$0.48, compared to the Street estimate of $0.43, and revenue in the range of $6.15-$6.275 billion, compared to the Street estimate of $6.3 billion.
Analysts at RBC Capital said they appreciate management’s prudence but err on the side of top-line guidance perhaps being overly conservative.