:max_bytes(150000):strip_icc()/GettyImages-2153300946-f8dd6867bdcb4933ad561a4ca08115f0.jpg "‘Roaring Kitty’ Post Appears to Send Petco Stock Soaring Despite Weak Results")
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Key Takeaways
- Petco Health + Wellness had a bigger-than-expected loss and revenue missed estimates on falling sales at its supplies and companion animal business.
- However, after initially falling Wednesday morning, shares soared nearly 35%, apparently on a post by meme stock hero “Roaring Kitty.”
- Petco shares have been volatile after “Roaring Kitty” posted a picture of a dog on X in June.
Petco Health + Wellness (WOOF) shares reversed course after the opening bell and surged nearly 35% by midday Wednesday, apparently fueled again by meme stock hero “Roaring Kitty,” a.k.a. Keith Gill.
Gill reposted a message on social media site Reddit from someone identified as “u/tryntobebatman,” who wrote, “Woof is going bananas. Who’s here with me!?!?” With that, the stock took off.
Shares initially declined Wednesday, a day after the pet products retailer reported worse-than-expected results as its supplies and companion animal business slumped. The company posted a loss per share of $0.09 as revenue slipped 0.5% year-over-year to $1.52 billion, with both slightly worse than consensus forecasts of analysts polled by Visible Alpha. Comparable sales rose 0.3%, while analysts were looking for a drop.
Sales at its supplies and companion animal unit tumbled 4.7%, while consumables division sales gained 1.5%, and sales at its services and other business was up 3.1%.
The company anticipates a current-quarter adjusted loss per share of $0.03 to $0.04, while analysts expect a per-share adjusted loss of $0.03. It sees revenue of about $1.5 billion, in line with estimates.
Petco Shares Have Been Volatile, Thanks in Part To ‘Roaring Kitty’
Shares of Petco have been on a wild ride of late, in part because of posts by Gill. In late June, the stock spiked briefly when Gill posted a picture on X of a dog, suggesting to some that he had invested in Petco and rival Chewy (CHWY). (He did take a stake in Chewy).
Shares slumped in August, then recovered some before falling early this month when Gill showed another picture, this time from the movie “Toy Story 2,” leading some to believe he was dropping his investment in Chewy. However, they rallied again, and with today’s gains are up about 28% year-to-date.