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Shareholders might have noticed that Petco Health and Wellness Company, Inc. (NASDAQ:WOOF) filed its quarterly result this time last week. The early response was not positive, with shares down 4.5% to US$16.01 in the past week. Petco Health and Wellness Company reported in line with analyst predictions, delivering revenues of US$1.5b and statutory earnings per share of US$0.09, suggesting the business is executing well and in line with its plan. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.
View our latest analysis for Petco Health and Wellness Company
Taking into account the latest results, the current consensus from Petco Health and Wellness Company's twelve analysts is for revenues of US$6.18b in 2023, which would reflect a reasonable 5.2% increase on its sales over the past 12 months. Per-share earnings are expected to swell 10% to US$0.76. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$6.20b and earnings per share (EPS) of US$0.84 in 2023. The analysts seem to have become a little more negative on the business after the latest results, given the minor downgrade to their earnings per share numbers for next year.
It might be a surprise to learn that the consensus price target fell 11% to US$22.08, with the analysts clearly linking lower forecast earnings to the performance of the stock price. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. The most optimistic Petco Health and Wellness Company analyst has a price target of US$30.00 per share, while the most pessimistic values it at US$13.00. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business.
Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. We would highlight that Petco Health and Wellness Company's revenue growth is expected to slow, with the forecast 7.0% annualised growth rate until the end of 2023 being well below the historical 12% growth over the last year. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 6.4% annually. Factoring in the forecast slowdown in growth, it looks like Petco Health and Wellness Company is forecast to grow at about the same rate as the wider industry.