Pets at Home Group (LON:PETS) Releases Quarterly Earnings Results

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

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 Up 6.3%

Shares of LON:PETS opened at GBX 196.83 on Wednesday. The firm has a fifty day moving average price of GBX 184.07 and a two-hundred day moving average price of GBX 197.89. The company has a debt-to-equity ratio of 41.04, a current ratio of 0.63 and a quick ratio of 0.57. 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 price-to-earnings ratio of 11.86, a PEG ratio of 2.66 and a beta of 1.07.

Analyst Upgrades and Downgrades

A number of analysts recently issued reports on PETS shares. Jefferies Financial Group reiterated a “buy” rating and set a GBX 265 price objective on shares of Pets at Home Group in a research note on Wednesday. Canaccord Genuity Group upgraded Pets at Home Group to a “buy” rating and raised their target price for the stock from GBX 181 to GBX 245 in a research note on Wednesday, April 1st. Three equities research analysts have rated the stock with a Buy rating and one has assigned a Hold rating to the company’s stock. According to data from MarketBeat.com, Pets at Home Group presently has an average rating of “Moderate Buy” and an average price target 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.