Category: Chewy stock price

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Chewy plunges 10% after earnings miss estimates amid post-pandemic growth slowdown

Chewy IPO

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  • Shares of Chewy.com fell as much as 10% on Thursday after its second-quarter earnings report missed estimates.
  • The company said it added fewer new customers in the quarter as growth slowed in the post-pandemic quarter.
  • Despite the growth slowdown, Chewy said it’s growing market share among pet supply retailers.
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Chewy plunged as much as 10% on Thursday after the online pet supply retailer missed second-quarter earnings estimates.

The company said growth slowed down in the quarter relative to the year prior when customers were flocking to e-commerce amid the pandemic, limiting their in-person store visits. Despite the slowdown in growth, Chewy said its market share continues to grow among pet supply retailers.

Here were the key numbers:

Revenue: $2.16 billion, versus estimates of $2.17 billion
Earnings per share: -$0.04, versus estimates of -$0.01

Revenue grew 27% year-over-year, and gross margins expanded by 2% to 27.5%. Meanwhile, a bulk of the net loss was tied to share-based compensation charges of more than $25 million.

“Our results once again demonstrate the strength of our business model and the incredible bond between pets and pet parents. Our business remains healthy, with second quarter net sales up 27%, driven by a 21% increase in active customers and a 13% increase in net sales per active customer,” Chewy CEO Sumit Singh said.

JPMorgan was impressed with Chewy’s results, and in a note on Wednesday reiterated its Overweight rating but lowered its price target to $95 from $98.

“We remain positive on Chewy and view the pullback as a buying opportunity when the dust settles,” JPMorgan said, adding that it “remains encouraged by overall execution and new initiatives such as Practice Hub within Chewy Health.”

Shares of Chewy.com are down 12% year-to-date, with much of those losses being printed in Thursday’s trading session.

Read the original article on Business Insider

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Chewy shares leap 13% after surprise swing to quarterly profit

Chewy Taco Cat Halloween Costume

Chewy

  • Chewy shares climbed by 13% Wednesday following the fourth-quarter results from the pet-products seller.
  • The company swung to a profit of $0.05 a share, surprising analysts who had expected a loss of $0.10 a share.
  • Chewy’s first-quarter sales forecast of $2.11 billion to $2.13 billion was above Wall Street’s target.
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Shares of Chewy jumped Wednesday after the online pet-products retailer unexpectedly swung to a fourth-quarter profit, bolstered by millions of more people last year who took on duties of caring for animals during the COVID-19 pandemic.

The company late Tuesday posted fourth-quarter earnings of $0.05 a share, compared with expectations for a loss of $0.10 a share in a survey of analysts by Refinitiv. A year earlier, Chewy posted a per-share loss of $0.15.

Sales of $2.04 billion beat Wall Street’s target of $1.96 billion as the company dealt with “surging volume”. Sales a year ago were $1.35 billion.

Chewy shares climbed by 13% to $90.95, a move that sets up the stock to trim its year-to-date loss to less than 1%. The stock price began to decelerate in early February but it’s more than doubled from about $36 over the past 12 months.

The company added 5.7 million net active customers in 2020, representing 42.7% annual growth. It also said it widened its product offerings to include gift cards, personalized items, and vet services. “Pet adoptions surged in 2020 as millions of homebound people and families sought out the comfort, companionship, and joy of pet parenthood” during the pandemic, the company said.

Chewy forecast first-quarter sales of $2.11 billion to $2.13 billion, higher than the average analyst forecast of $2.07 billion.

Wedbush analysts on Wednesday raised their price target to $100 from $90 and reiterated their outperform rating on Chewy following the company’s “solid earnings beat, above-consensus guidance, and a path to a 2021 beat and even higher long-term earnings power.”

Chewy’s cofounder and former chief executive, Ryan Cohen, is leading a turnaround effort at video game retailer and Reddit-community favorite GameStop.

Read the original article on Business Insider