Petco (WOOF) shares closed nearly 29% lower after reporting third-quarter results that missed Wall Street expectations. The company says it is "taking swift and decisive action" in a bid to turn things around.
Hormel Foods (HRL) shares fell nearly 5%. The company's fourth-quarter results fell short of estimates, citing "slowing consumer demand, inflationary pressures," and headwinds in its turkey business.
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JOSH LIPTON: Some of today's trending tickers. Shares of Petco getting battered after the company posted an unexpected loss in the third quarter. So ticker here is WOOF, as we know, Julie, which seems appropriate given the stock move today. It actually just absolutely crashed on that headline. It's down about some 70% now this year. So reported Q3 adjusted loss per share, that was worse than what the Street expected. And the CEO talked about how the company is navigating, in his words, a challenging consumer environment. That's how he puts it.
JULIE HYMAN: They're doing that by changing what they're carrying, it sounds like. They're going to be culling some brands that they carry that, he says, have not been performing, Ron Coughlin, the CEO there, and saying that this should help our shelves be more productive. He said, he acknowledged the third quarter results were below our expectations and said that they're taking action. But investors are not reassured by that action that they're taking.
Analysts, like those over at Wells Fargo, are saying that this represents another disappointing shortfall for the company. And that the shares will remain, get this, in the doghouse.
JOSH LIPTON: Nice touch. Yes. They actually they downgraded equal weight. They cut the target to three, just considering they say these discretionary headwinds.
JULIE HYMAN: Yeah, definitely. Well, let's talk about Hormel Foods as well. Spam maker reporting a miss on the top and bottom line in its fourth quarter. And the company also reporting a lackluster fiscal year 2024 forecast. Hormel, amongst the worst performing stocks in the S&P 500 today, with that dip that we're seeing from the share-- in the shares, excuse me.
Analysts here also quite negative, saying the shares-- the results missed from top to bottom. That was the result or the commentary, I should say, from Barclays with this miss that we were getting from the company.
JOSH LIPTON: Yeah. It's a rough day. Of course, the maker of spam, Skippy, swing and miss on Q4 results, not what the Street wanted to see. Shares were actually trading at the lowest since 2017 today at one point. Commentary from execs on the consumer, again, kind of cautious. They talk about slowing consumer demand. It was also interesting to see what analysts were talking about not just here but internationally, how that's under pressure. And weakness in China was specifically called out.