Chewy Inc Down 3.38% To $16.80 After Earnings Beat

March 21, 2024 | by

Thursday, March 21, 2024 – Chewy Inc (CHWY) reported upside earnings and revenues today.

The consensus among analysts for Chewy Inc was for an earnings per share (EPS) loss of $0.04 per share. The firm was able to surpass those projections, reporting an EPS of $0.18, a positive surprise of $0.22 (550%). Profits rose 1700% year-over-year after reporting an EPS of $0.01 in its year-ago quarter. The positive growth rate signals that the Consumer Cyclical company is performing well amid recent economic conditions.

Consensus estimates for Chewy Inc revenue averaged out to $2.8 billion, with the business managing to beat those expectations with reported fourth-quarter revenue of $2.8 billion. The $60 million (2%) positive revenue surprise led to 5% growth year-over-year as the firm reported revenue of $2.7 billion in its year-ago quarter. The higher earnings growth compared to revenue points to Chewy Inc improving its profit margin.

The stock is down 3.38% to $16.80 after the report.

The firm’s lower revenue growth to earnings signals that the firm has been able to reduce costs and improve its profit margin overall.

The average recommendation from Wall Street analysts was a Buy which may get revised based on this new data.

Trading in the five days leading up to the report earned Chewy Inc a Bullish Sentiment Rank from InvestorsObserver.

Chewy Inc has performed poorly during the past few months, garnering a low Long-Term Technical Rank by InvestorsObserver of 7, putting Chewy Inc in the bottom 25% of stocks. The firm was recently trading at a 52-week low of $15.78 on February 23, 2024 and set a 52-week high on June 15, 2023 at $40.78.

Chewy is the largest e-commerce pet care retailer in the U.S., generating $8.9 billion in 2021 sales across pet food, treats, hard goods, and pharmacy categories. The firm was founded in 2011, acquired by PetSmart in 2017, and tapped public markets as a standalone company in 2019, after spending a couple of years developing under the aegis of the pet superstore chain. The firm generates sales from pet food, treats, over-the-counter medications, medical prescription fulfillment, and hard goods, like crates, leashes, and bowls.


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