Chewy Beats Earnings Estimates but Outlook Disappoints. Shares Jump 6%

Dow Jones12-10

Shares of Chewy(CHWY)$ jumped about 6% in premarket trading. The company posted adjusted earnings of 32 cents a share for its fiscal third quarter, surpassing analysts’ consensus estimate of 30 cents, according to FactSet. Net sales totaled $3.12 billion, up 8.3% from the prior year and ahead of Wall Street’s call for $3.1 billion.

But Chewy’s guidance for the fourth quarter came in lower than expected. The company said it expects adjusted per-share earnings of 24 cents to 27 cents, below analysts’ expectations of 29 cents. The net sales estimate of $3.24 billion to $3.26 billion also came in a tick below Wall Street’s forecast.

“Chewy continues to outperform the pet category and expand market share, with profits once again growing faster than sales,” said CEO Sumit Singh in a statement.

Investors will now attempt to square Chewy’s third-quarter outperformance and growing market share with its tepid outlook for the current quarter.

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