WMT - Chewy Impresses With Strong Q1 Results; Analysts Envision Stabilized Customer Growth And Enhanced Profitability Ahead | Benzinga
Chewy, Inc. (NYSE:CHWY) shares are trading higher on Thursday.
Yesterday, the e-commerce retailer for pet supplies reported better-than-expected first-quarter 2024 results. The pet care company reported adjusted EPS of $0.31 compared to the consensus of $0.07 and $0.20 a year ago. The company reported sales of $2.88 billion, up 3.1% Y/Y, marginally above the consensus of $2.85 billion.
Here’s a glimpse into some analyst opinions and reactions to the company’s quarterly performance:
JP Morgan analyst Doug Anmuth reiterated the Overweight rating on Chewy, raising the price forecast to $28 from $22.
The analyst highlighted the early positive signs regarding pet household formations and the company’s CRM initiatives, which are bearing fruit.
Per Anmuth, management’s tone was notably more upbeat than at fourth-quarter earnings or the December ’23 Investor Day, but the company is also being measured around slight improvements in the industry backdrop.
The analyst tweaked the top-line higher in FY24 &
FY25, but raised Adj. EBITDA more materially by 11% & 7%, highlighting category positioning, new growth verticals, profit trajectory, capital returns, and improving execution.
Looking ahead, the analyst sees Active Customers to stabilize in the second half.
Anmuth also underscored Chewy’s prudent approach ...