Pets at Home Group (LON:PETS) Posts Earnings Results

Pets at Home Group (LON:PETS) announced its quarterly earnings data on Wednesday. The company reported GBX 14.80 EPS for the quarter, Digital Look Earnings reports. Pets at Home Group had a return on equity of 7.83% and a net margin of 5.22%.The business had revenue of GBX 146.96 billion during the quarter.

Here are the key takeaways from Pets at Home Group’s conference call:

• Management said the retail turnaround is showing early traction, with 4% overall volume growth after a targeted price investment and a strong start to the new financial year.
• The company reaffirmed FY2027 guidance, but expects only a low-single-digit revenue outlook for Vets in the near term before growth improves as the COVID-era pet cohort ages and practice openings accelerate.
• Pets at Home plans to deliver about £20 million of support office cost savings this year, while also starting to rebuild retail profitability and aiming to regain market share in a returning-growth market.
• Executives described accessories as an area that lost momentum due to weaker innovation and commercial execution, but said new ranges and brand launches should begin to help later this year.
• Management remained upbeat on the long-term opportunity in Vets, pointing to strong customer satisfaction, a growing pipeline of practice extensions, and room to monetize advanced capabilities such as MRI and endoscopy.

Pets at Home Group Stock Performance

Shares of PETS stock opened at GBX 196.83 on Wednesday. The company has a debt-to-equity ratio of 41.04, a current ratio of 0.63 and a quick ratio of 0.57. The firm has a 50-day moving average of GBX 184.07 and a 200-day moving average of GBX 197.89. Pets at Home Group has a one year low of GBX 172.70 and a one year high of GBX 276.60. The company has a market cap of £870.18 million, a P/E ratio of 11.86, a P/E/G ratio of 2.66 and a beta of 1.07.

Wall Street Analyst Weigh In

Several analysts recently issued reports on the stock. Canaccord Genuity Group raised shares of Pets at Home Group to a “buy” rating and lifted their price target for the company from GBX 181 to GBX 245 in a research report on Wednesday, April 1st. Jefferies Financial Group restated a “buy” rating and set a GBX 265 price objective on shares of Pets at Home Group in a report on Wednesday. Three investment analysts have rated the stock with a Buy rating and one has issued a Hold rating to the stock. Based on data from MarketBeat, the stock has a consensus rating of “Moderate Buy” and an average target price of GBX 240.

Pets at Home Group Company Profile

We are the UK’s leading pet care business, providing pet owners with everything they need to be able to look after their pet – from food, toys and bedding, and grooming services, right the way through to first opinion veterinary care.

Our stores represent a unique environment and provide a practical, fun and unique experience for pet owners. We’ll help owners select the right food for their pet with nutrition consultations, help test the water is safe for their fish tank before new fish are introduced, and help socialise a new puppy with socilaisation and training classes – and much more.