Why Petco Shares Are Gaining Today

Petco Health And Wellness Company Inc WOOF reported first-quarter FY22 sales growth of 4.3% year-on-year, to $1.48 billion, beating the consensus of $1.46 billion. Comparable sales growth was 5.1%.
The gross profit rose 2% Y/Y to $607.7 million with a margin of 41.2%.
Selling, general and administrative expenses increased 2% to $557.7 million.
The operating margin was 3.4%, and operating income for the quarter rose 5% to $49.9 million.
Adjusted EPS of $0.17 beat the analyst consensus of $0.16.
Adjusted EBITDA increased 5.4% to $132.5 million with an adjusted EBITDA margin of 9%.
The company held $190.9 million in cash and equivalents as of April 30, 2022.
Outlook: Petco Health maintained its FY22 sales outlook of $6.15 billion - $6.25 billion versus the consensus of $6.22 billion.
The company continues to expect FY22 adjusted EPS of $0.97 - $1.00 versus the estimate of $0.99.
Price Action: WOOF shares are trading higher by 10.6% at $16.15 in premarket on the last check Tuesday.

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