Petco (WOOF) Climbs 14% on Strong Q3

We recently published 10 Small Stocks with Mighty Gains. Petco Health and Wellness Company, Inc. (NASDAQ:WOOF) is one of the top-performing stocks on Wednesday.

Petco extended its winning streak to a fourth consecutive day on Wednesday, jumping 14.48 percent to end at $3.40 apiece as investors continued to digest its strong earnings performance in the third quarter of the year.

In an updated report, Petco Health and Wellness Company, Inc. (NASDAQ:WOOF) said it swung to a net income attributable to shareholders of $9.3 million from a $16.67 million net loss in the same period last year, on the back of a 634-percent jump in operating income at $29.2 million from $3.98 million year-on-year.

Net sales, on the other hand, dipped by 3.3 percent to $1.46 billion from $1.51 billion, but fell in line with the company’s outlook.

“Once again, we delivered on Petco’s profitability goals as we continue to execute on our multi-phased transformation,” Petco Health and Wellness Company, Inc. (NASDAQ:WOOF) CEO Joel Anderson said.

“Rebuilding the base of our economic model has been a priority in 2025. This strengthened base sets the foundation for a return to growth during fiscal 2026,” he noted.

Looking ahead, Petco Health and Wellness Company, Inc. (NASDAQ:WOOF) expects full-year revenues to drop by 2.5 to 2.8 percent. However, it raised its adjusted EBITDA guidance to a range of $395 million to $397 million from $385 million to $395 million previously.

For the fourth quarter alone, net sales are expected to dip by low single digits, while adjusted EBITDA is targeted at $93 million to $95 million.

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Disclosure: None. This article is originally published at Insider Monkey.