BUZZ-Petco Health leaps after 2025 EBITDA forecast boost

Reuters
Aug 29
BUZZ-Petco Health leaps after 2025 EBITDA forecast boost

** Shares of Petco Health and Wellness WOOF.O leap 15.5% premarket to $3.73, over one-mth high, after co raised full-yr adj earnings before interest, taxes, depreciation, and amortization (EBITDA) forecast

** San Diego, California-based pet retailer late Thurs expects annual adj EBITDA of $385-$395 mln, which is up from prior outlook of $375-$390 mln

** It maintained 2025 sales outlook and forecasted current-qtr sales to both be down low single digits yr/yr, assuming tariffs into U.S. from China and other countries don't increase for remainder of the year

** For Q2, co posted sales of $1.489 bln, down ~2% from yr-ago period, and adj EBITDA of $113.9 mln. Analysts had modeled sales of $1.493 bln and adj EBITDA of $83.93 mln, according to LSEG data

** Of 11 analysts covering WOOF, recommendation breakdown is 2 "buy", 8 "hold" and 1 "sell" and median PT is $4

** Through Thurs close, shares off 15% YTD vs 12% advance in the Nasdaq .IXIC

(Lance Tupper is a Reuters market analyst. The views expressed are his own)

((lance.tupper@tr.com 1-646-279-6380))

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