Shares of Wag Group Co. (PET) experienced a significant surge in its stock price after the company reported a surprise fourth-quarter profit and raised its full-year outlook. The company’s stock price rose by 30% in after-hours trading on Tuesday, despite the fact that it had previously been trading down by 4.17%.
Wag Group Co. is a company that connects dog owners with dog walkers and other pet-care services. The company’s forecast for 2023 revenue is between $75 million and $77 million, which is a 7% improvement from the midpoint of its prior forecast. Additionally, Wag Group Co. expects its adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) to be between a $2 million loss and roughly breakeven, which is a 91% improvement over its prior forecast. This forecast is based on the continued trend in return-to-office, the expansion of its wellness business, and the acquisition of Dog Food Advisor, which is intended to help the company advance into pet food and treats.
In the fourth quarter, Wag Group Co. earned seven cents a share, compared to FactSet expectations for a 14-cent per-share loss. Furthermore, the company’s revenue of $17 million also exceeded expectations. This unexpected profit and improved outlook has given investors increased confidence in the company’s future prospects and has resulted in a significant jump in the company’s stock price.
The pet care industry is an ever-growing sector that is expected to continue to expand in the coming years. According to a report from Zion Market Research, the global pet care market was valued at $121.3 billion in 2019 and is projected to reach $199.3 billion by 2026, with a compound annual growth rate (CAGR) of 7.2%. This growth is driven by increasing pet adoption, rising disposable incomes, and increasing awareness of pet health and wellness. In addition, the pet care industry is expected to benefit from the increasing trend of pet humanization, which is the process of treating pets as family members and providing them with the same level of care and attention as human family members.
Wag Group Co. has positioned itself to capitalize on this growth in the pet care industry. The company’s acquisition of Dog Food Advisor will enable it to enter the pet food and treats market, while its expansion of its wellness business and its forecast of a continued trend in return-to-office will help to drive further growth. As a result, Wag Group Co.’s stock price has been given a significant boost following the company’s surprise fourth-quarter profit and improved full-year outlook.
The pet care industry is an ever-growing sector that is expected to continue to expand in the coming years. As a result, companies like Wag Group Co. that are able to capitalize on this growth have the potential to see significant stock price increases. Wag Group Co.’s surprise fourth-quarter profit and improved full-year outlook have given investors increased confidence in the company’s future prospects and have resulted in a significant jump in the company’s stock price.
Therefore, Wag Group Co. is well-positioned to capitalize on the growth of the pet care industry and could be a worthwhile investment for those looking to capitalize on this trend.
