Petco Stock Brushes Off Quarterly Earnings, Revenue Win

WOOF carries a more than 37% year-over-year deficit

Digital Content Manager
May 24, 2022 at 10:10 AM
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Petco Health and Wellness Company Inc (NASDAQ:WOOF) reported better-than-expected first-quarter earnings of 17 cents per share this morning, marking a 4% sales rise, on $1.48 billion in revenue. What's more, the pet retailer's comparable sales beat estimates with a 5% year-over-year jump. WOOF is erasing this morning's premarket surge, though, last seen down 1.9% to trade at $14.32.

Digging deeper, the security is still just two sessions removed from its May 20, all-time low of $14.38, as it continues to struggle with overhead pressure at the 10-day moving average. Should these losses hold, Petco stock may extend a three-day losing streak. Longer term, the security already carries a 37.5% year-over-year deficit.

While short interest is declining -- down 7% in the most recent reporting period -- short sellers remain in control. In fact, the 19.51 million shares sold short make up 24.4% of the security's available float, or more than two weeks' worth of pent-up buying power.

The security is getting blasted in the options pits today, with 3,521 calls and 3,696 puts across the tape so far, which is five times the volume that's typically seen at this point. Most popular are the weekly 5/27 15-strike call and the September 17.50 call, with new positions being opened at the latter.

 

 

 

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