In our view, Petco Health & Wellness combines the best of brick & mortar and eCommerce and will most likely outperform its own guidance. This is important in a world plagued by rising inflation and its impacts on both top and bottom-line results. The company is only reiterating its guidance for revenue and earnings but in a range that brackets the consensus. The GAAP EPS came in at $0.09 or up $0.06 from last year while the adjusted earnings were only flat albeit $0.02 better than expected. The revenue was driven by a 5.1% comp, up 33.5% versus 2 years ago, and is accompanied by robust GAAP margin expansion. The company reported $1.48 billion in revenue for a gain of 4.3% over last year and it beat the consensus figure by $0.03 billion or 2.0%.

Petco had a good quarter in light of the underperformance posted by Petmed Express (NASDAQ: PETS). Petco Health And Wellness Company Has Healthy Quarter Sooner or later the shorts are going to have to cover and it may be hard for them to find shares to buy. The amount isnвЂ™t much but it is a factor in favor of higher share prices, as is the 24% short interest. There have been two insider transactions, one from the CFO and one from the CEO, for a total of $1.1 million in purchases. The selling was done in Q2 by a single larger shareholder who cashed out on the investment while since then there has only been buying. There havenвЂ™t been any insider transactions for the last two quarters and the net of activity for the trailing twelve months is bearish but the details are revealing. The insider activity has been pretty telling as well. This has the total institutional ownership up to 62.5% and growing we think, now that Q1 results are in the bag. At least four major purchases have been reported so far including Neuberger Berman which owns nearly 1.6% of the company. The price action in the stock hit a new low recently, under the influence of strong short-selling, and the institutions stepped in to buy on the dip. The takeaway, however, is that institutional activity has been net bullish the entire time and the activity is picking up once again. The price action in Petco (NASDAQ: WOOF) has been ratcheting lower ever since the IPO two years ago.

Microsoft outlook 15.38