These Analysts Revise Their Forecasts On Chewy Following Q2 Results

Benzinga Earnings20:01

Chewy Inc. (NYSE:CHWY) on Wednesday reported downbeat sales for the second quarter but raised its full-year outlook.

Chewy reported adjusted earnings of 36 cents per share, matching the consensus estimate and management’s guidance of 36 cents. Sales rose 7.3% year over year to $3.33 billion, slightly below the $3.361 billion consensus estimate.

Chewy expects third-quarter sales of $3.323 billion to $3.358 billion, compared with the $3.332 billion consensus estimate. It forecast an adjusted EBITDA margin of 6.6% to 6.7%.

The company raised its fiscal 2026 sales outlook to $13.46 billion-$13.57 billion from $13.4 billion-$13.55 billion. Wall Street expects $13.553 billion. Chewy also lifted its adjusted EBITDA margin forecast to 6.7%-6.8% from 6.6%-6.8%.

Sumit Singh, Chief Executive Officer of Chewy said, “The durability of our recurring revenue base, continued customer growth, and disciplined execution give us confidence to raise our full-year revenue and profitability outlook, while continuing to invest in compelling opportunities that deepen customer engagement and create long-term shareholder value.”

Chewy shares fell 1.5% to $20.44 in pre-market trading.

These analysts made changes to their price targets on Chewy following earnings announcement.

  • Evercore ISI Group analyst Mark Mahaney downgraded the stock from Outperform to In-Line and announced a $25 price target.
  • Baird analyst Justin Kleber maintained the stock with an Outperform rating and cut the price target from $30 to $28.
  • Rosenblatt analyst Scott Devitt maintained the stock with a Neutral and lowered the price target from $25 to $24.

Considering buying CHWY stock? Here’s what analysts think:

Photo via Shutterstock

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

We need your insight to fill this gap
Leave a comment