Chewy (NYSE:CHWY) Reports Strong Quarterly Earnings, Surpassing Expectations

Chewy (NYSE:CHWY) announced its latest earnings results on Wednesday, revealing impressive numbers that exceeded market expectations. The company reported earnings of $0.28 per share for the quarter, significantly outpacing analysts' consensus estimate of $0.03 by $0.25, according to reports from Briefing.com. Chewy's revenue reached $3.25 billion during the quarter, also surpassing the anticipated $3.20 billion. This impressive performance resulted in a net margin of 3.51% and a return on equity of 24.47%. Additionally, the company saw its revenue grow by 15.0% compared to the same period last year, when it earned $0.07 per share.

Chewy Stock Activity

On Friday, Chewy's stock experienced a slight decline, trading down by 1.4% to hit $32.23. The trading volume for the day reached 1,276,593 shares, which was lower than the average volume of 7,417,271 shares. Chewy currently holds a market capitalization of $13.12 billion, with a price-to-earnings (P/E) ratio of 35.38 and a P/E/G ratio of 2.21. Over the past year, the stock has fluctuated between a low of $14.69 and a high of $40.09. Its 50-day simple moving average sits at $36.00, with a 200-day moving average at $33.13.

Analyst Insights

Chewy has been the focus of various analyst reports recently. Guggenheim set a price target of $42.00 and assigned a "buy" rating to the stock. Conversely, BNP Paribas moved to downgrade Chewy from an "outperform" to a "neutral" rating. Seaport Research Partners upgraded the company to a "hold" rating, while Morgan Stanley increased their target price from $38.00 to $40.00, maintaining an "overweight" rating. Mizuho also raised their price target to $43.00, asserting an "outperform" rating. Overall, six analysts recommend holding the stock, while seventeen suggest it is a good buy, leading to a consensus rating of "Moderate Buy" with an average price target of $38.68.

Insider Actions

In related news, CEO Sumit Singh recently sold 4,000 shares of Chewy on January 17th, fetching an average price of $37.52, totaling $150,080. Following this sale, Singh retains ownership of 518,581 shares valued at approximately $19.46 million. Additionally, CFO David Reeder sold 307,558 shares on February 7th, at an average price of $37.48, amounting to approximately $11.53 million. These trades showcased a reduction of 36.02% in Reeder's position. In the last three months alone, insiders offloaded 8,083,269 shares valued around $290.61 million, with insiders now holding 2.10% of the company’s stock.

About Chewy

Chewy, Inc. operates primarily in the e-commerce sector within the United States, focusing on pet-related products and services. The company offers various items, including pet food, treats, supplies, medications, and health products for a wide range of pets, including dogs, cats, birds, and more, through its online platforms and mobile applications.

Earnings, Stocks, Chewy