Petco posted better-than-expected results for the third quarter, along with an outlook for the fourth quarter that came in under estimates

The San Diego-based pet store chain said Thursday that it lost $16.7 million, or 6 cents a share, in the third quarter, narrowing from its year-ago loss of $1.24 billion, or $4.63 per share.

Revenue was up 1.2% from a year earlier to $1.51 billion, edging past the $1.5 billion estimate from Wall Street analysts, according to FactSet.

Last year's earnings numbers included a $1.2 billion impairment charge associated with goodwill originally recorded in 2015.

On an adjusted basis, the company posted a loss of 2 cents per share, better than Wall Street expectations for a loss of 4 cents. A year earlier, Petco posted a 5-cent adjusted loss.

Same-store sales were up 1.8% for the third quarter, surpassing the average analyst target of 0.7% growth.

For the fourth quarter, Petco expects a adjusted earnings per share of zero cents to 2 cents, and revenue of $1.55 billion. Analysts are seeking a profit of 3 cents per share on $1.57 billion in revenue.

"While there is more work to do, our improving results increase our conviction that we are on the right path to position Petco to win long-term," Chief Executive Joel Anderson said.

The company's stock rose 5.5% to $5.17 in post-market trading after finishing the regular session down 3% at $4.90.