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

Pets at Home Group (LON:PETS) posted its earnings results on Wednesday. The company reported GBX 14.80 earnings per share for the quarter, Digital Look Earnings reports. Pets at Home Group had a net margin of 4.29% and a return on equity of 6.50%. The firm had revenue of GBX 146.96 billion for 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 Price Performance

PETS stock opened at GBX 188.10 on Friday. Pets at Home Group has a 12 month low of GBX 172.70 and a 12 month high of GBX 276.60. The company has a current ratio of 0.61, a quick ratio of 0.57 and a debt-to-equity ratio of 40.77. The company has a 50-day moving average price of GBX 184.21 and a 200 day moving average price of GBX 197.69. The stock has a market cap of £831.60 million, a PE ratio of 11.33, a P/E/G ratio of 2.66 and a beta of 1.07.

Wall Street Analysts Forecast Growth

A number of analysts have recently weighed in on the stock. Canaccord Genuity Group restated a “buy” rating and issued a GBX 245 target price on shares of Pets at Home Group in a report on Thursday. Jefferies Financial Group restated a “buy” rating and issued a GBX 265 target price on shares of Pets at Home Group in a report on Wednesday. Finally, Deutsche Bank Aktiengesellschaft restated a “buy” rating and issued a GBX 230 target price on shares of Pets at Home Group in a report on Thursday. Three research analysts have rated the stock with a Buy rating and one has issued a Hold rating to the company. According to MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and a consensus price target of GBX 240.

About Pets at Home Group

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.