E-commerce pet food and supplies retailer Chewy (NYSE:CHWY) will be announcing earnings results tomorrow before market open. Here’s what to expect.
Chewy met analysts’ revenue expectations last quarter, reporting revenues of $2.86 billion, up 2.6% year on year. It was a very strong quarter for the company, with a solid beat of analysts’ EBITDA estimates.
Is Chewy a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Chewy’s revenue to grow 4% year on year to $2.86 billion, slowing from the 8.4% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.23 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Chewy has only missed Wall Street’s revenue estimates once over the last two years, exceeding top-line expectations by 1.4% on average.
Looking at Chewy’s peers in the online retail segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Carvana delivered year-on-year revenue growth of 31.8%, beating analysts’ expectations by 5.3%, and Revolve reported revenues up 9.9%, topping estimates by 4.4%. Carvana traded up 19.2% following the results while Revolve was also up 27.8%.
Read our full analysis of Carvana’s results here and Revolve’s results here.
There has been positive sentiment among investors in the online retail segment, with share prices up 15.7% on average over the last month. Chewy is up 17.4% during the same time and is heading into earnings with an average analyst price target of $34.75 (compared to the current share price of $33.87).
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