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2022-05-24 22:40

Petco Health and Wellness Company Inc. stock closed roughly up 4.0% on Tuesday after the company reported its first quarter 2022 financial results.

Petco, a category-defining health and wellness organization, was founded in 1965 with the intent of enhancing the lives of pets, pet parents, and their own Petco partners. The company has constantly set new standards in pet care by providing complete pet wellness products, services, and solutions.

Petco Q1 financial highlights

For the first quarter 2022 the company generated a net revenue of $1.48 billion. The net revenue surged by 4.3% due to comparable sales growth of 5.1%. The net income for the first quarter of 2022 was calculated as $24.7 million or $0.09 per share, an increase of $17.1 million.

For the first quarter of 2022, the adjusted net income from $1.7 million to $46.1 million or $0.17 per share. And lastly the adjusted EBTIDA moved up to $132.6 million, this is an increase of $6.8 million. As per CEO Ron Coughlin:

"Petco's strong Q1 results were driven by our incredible team's 'no excuses' execution approach, a pet category that continues to surge, and the power of our one-of-a-kind end to end offering that now includes over 200 fully owned veterinary hospitals."

The $4.59 billion company that trades at a PE multiple of 24.43 is now down more than 30% from its year-to-date high in April.

Petco future guidance

Petco's full-year financial projection for 2022 has remained unchanged.

For the full year 2022, the company is expecting its revenue between $6.15 billion to $6.25 billion. However in terms of adjusted EBTIDA the company estimates it to be around $630 million and $645 million. And the company forecasts its earnings per share between $0.97 and $1.00 for the full year 2022.

On May 5, 2022 Butterfly Network, Inc. and Petco Health and Wellness Company have reached a deal to deploy Butterfly iQ+ Vet to Petco's expanding network of approximately 200 full-service veterinary hospitals at Petco pet care centers. The Butterfly iQ+ Vet which is the world’s only handheld, one probe, whole-body, multi-species imaging device, is intended to provide veterinarians with useful clinical insights at the point-of-care by combining breakthrough ultrasound technology with artificial intelligence. Butterfly Network is the first and only ultrasound imaging provider in the United States to partner with a pet health and wellness firm.

In the earnings press release, Petco's Chief Veterinarian, Dr. Whitney Miller said:

“As we continue bringing innovative technologies to the full-service veterinary hospitals in Petco pet care centers nationwide, we are thrilled to partner with Butterfly to increase pets' access to high-quality ultrasound imaging."