Petco Q4 Revenue Forecast to Decline 2.4% Following Q3 EBITDA Guidance Miss
Petco reported Q3 revenue of $1.46 billion, down 3.1% year-over-year, and its EPS beat expectations while next-quarter EBITDA guidance fell short of analysts’ forecasts. For Q4, the market forecasts a 2.4% revenue decline YoY after a 7.3% drop last year, with shares down 8.6% and a $3.42 price target.
1. Q3 Results and Guidance
Petco reported Q3 revenue of $1.46 billion, down 3.1% year-over-year, and posted an EPS beat on cost controls. The company’s guidance for next quarter’s EBITDA fell below analysts’ forecasts, signaling potential margin pressure heading into year-end.
2. Q4 Expectations and Price Targets
Analysts project a 2.4% revenue decline for Q4, an improvement from a 7.3% drop in the same quarter last year. Shares have fallen 8.6% over the past month, while the average analyst price target stands at $3.42.
3. Peer Performance and Retail Trends
National Vision saw 15.1% year-over-year revenue growth in its Q4 report, and Tractor Supply delivered 3.3% growth but missed expectations by 2.4%. Specialty retail stocks have underperformed, down 9.7% on average over the last month, with tariffs and corporate tax adjustments raising questions about economic stability in 2025.