E-commerce pet food and supplies retailer Chewy (NYSE: CHWY) will be reporting earnings this Wednesday before market hours. Here’s what to look for.
Chewy beat analysts’ revenue expectations last quarter, reporting revenues of $3.12 billion, up 8.3% year on year. It was a very strong quarter for the company, with a solid beat of analysts’ EBITDA estimates and a narrow beat of analysts’ revenue estimates.
Is Chewy a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting Chewy’s revenue to be flat year on year, slowing from the 14.9% increase it recorded in the same quarter last year.
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 a history of exceeding Wall Street’s expectations.
Looking at Chewy’s peers in the online retail segment, some have already reported their Q4 results, giving us a hint as to what we can expect. Revolve delivered year-on-year revenue growth of 10.4%, beating analysts’ expectations by 6.2%, and Wayfair reported revenues up 6.9%, topping estimates by 1.1%. Revolve traded down 5.9% following the results while Wayfair was also down 11%.
Read our full analysis of Revolve’s results here and Wayfair’s results here.
There has been positive sentiment among investors in the online retail segment, with share prices up 3.3% on average over the last month. Chewy is down 4.3% during the same time and is heading into earnings with an average analyst price target of $43.82 (compared to the current share price of $23.65).
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