PetIQ PETQ is scheduled to release first-quarter 2024 results on May 8, after the closing bell.
In the last reported quarter, the company’s earnings beat estimates by 58.62%. It delivered an average earnings surprise of 366.03% in the past four quarters.
Q1 Estimates
The Zacks Consensus Estimate for revenues is pegged at $302.2 billion. The consensus mark for earnings is pinned at 42 cents per share.
Factors to Note
PetIQ reports total revenues under two segments —the Products segment and the Services segment.
During the last reported quarter, the Products segment witnessed revenue growth, which reflects broad-based growth in the company’s product categories from strong consumer demand across sales channels. The company experienced growth from flea and tick, prescription medication, health and wellness, as well as dental and treatment product offerings. This momentum is likely to have continued in the first quarter of 2024 as well.
PetIQ’s latest brand in its product portfolio, Rocco & Roxie, focused on the premium pet and Stain & Odor category, which grew ahead of the company’s projections in the last reported quarter and is likely to have witnessed growth in the to-be-reported quarter as well. PetIQ has also completed tests for a premium supplement offering under the Rocco & Roxie brand and a complete product launch is likely to be at the first-quarter end.
In January, the company announced the launch of Minties dental treats for large-sized dogs, expanding the Minties brand to include affordable, veterinarian-recommended dental treats for tiny/small, medium, and large-sized dogs, as well as cats.
In December 2023, PetIQ announced the launch of the Portable Calming Diffuser for Dogs and Cats from its SENTRY Calming line of pet care products which is intended to help pets feel calm and relaxed. These are likely to have contributed to the product segment revenues in the first quarter.
PETQ has been focused on expanding its presence online as well as offline through enhanced advertising and promotional efforts, especially during the second half of 2023. We expect these initiatives are likely to have boosted sales of PetIQ’s manufactured products in the soon-to-be-reported quarter similar to fourth-quarter results.
PetIQ’s Services segment revenues are likely to have been driven by operational improvements during the first quarter. However, the segment’s topline will be hurt by the closure of 149 wellness centers in the third and fourth quarters of 2023. Any further closure in the first quarter is likely to amplify the loss of sales.
For the first quarter of 2024, PetIQ expects net sales in the range of $290 million-$310 million.
What the Zacks Model Unveils
Our proven model does not conclusively predict an earnings beat for PETQ this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. This is not the case here, as you will see below.
Earnings ESP: Earnings ESP, which represents the difference between the Most Accurate Estimate and the Zacks Consensus Estimate, is 0.0%. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.
Zacks Rank: PetIQ currently carries a Zacks Rank #3.
PetIQ, Inc. Price and EPS Surprise
PetIQ, Inc. price-eps-surprise | PetIQ, Inc. Quote
Stocks to Consider
Here are a few other medical stocks worth considering, as these also have the right combination of elements to beat on earnings this reporting cycle.
Alcon ALC has an Earnings ESP of +1.88% and a Zacks Rank of 2 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The company’s shares have rallied 1.9% year to date. ALC’s earnings beat estimates in the last reported quarter. It delivered a trailing four-quarter average negative earnings surprise of 7.53%.
Adverum Biotechnologies ADVM has an Earnings ESP of +3.66% and a Zacks Rank of 2 at present.
Shares of the company have gained 38.5% year to date. ADVM’s earnings beat estimates in the last reported quarter. Adverum has a trailing four-quarter average earnings surprise of 3.58%.
Blueprint Medicines Corporation BPMC has an Earnings ESP of +29.45% and a Zacks Rank of 2. BPMC has an estimated long-term growth rate of 34%.
Blueprint Medicines’ earnings surpassed estimates in all the trailing four quarters, with the average surprise being 13.3%.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
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PetIQ, Inc. (PETQ) : Free Stock Analysis Report
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
