E-commerce pet food and supplies retailer Chewy (NYSE:CHWY) will be announcing earnings results this Wednesday before market hours. Here’s what to expect.
Chewy met analysts’ revenue expectations last quarter, reporting revenues of $3.36 billion, up 7.7% year on year. It was a strong quarter for the company, with an impressive beat of analysts’ EBITDA 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 grow 6.9% year on year, slowing from the 8.6% 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 will stay the course heading into earnings. Chewy rarely misses Wall Street’s revenue estimates.
Looking at Chewy’s peers in the online retail segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Revolve delivered year-on-year revenue growth of 12.4%, beating analysts’ expectations by 1.4%, and Amazon reported revenues up 19.6%, topping estimates by 2%. Revolve traded down 4.1% following the results while Amazon was up 15.3%.
Read our full analysis of Revolve’s results here and Amazon’s results here.
Investors in the online retail segment have had steady hands going into earnings, with share prices flat over the last month. Chewy is up 4.7% during the same time and is heading into earnings with an average analyst price target of $30.32 (compared to the current share price of $23.66).
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