Join +750K new investors every month who copy stock picks from billionaire's portfoliosSign Up Free

Analysts expect Chewy Q4 results to be in-line

Published 15/03/2023, 15:20
© Reuters.
CHWY
-

By Sam Boughedda

Online pet product retailer Chewy (NYSE:CHWY) is set to post its fourth-quarter results on March 22, with analysts at Wedbush and BofA maintaining their positive stances on the stock ahead of the release.

Wedbush has an Outperform rating and a $55 per share price target on the stock. Analysts told investors in a note that the firm "stay positive" on CHWY into its earnings.

"While buy-side expectations for the quarter and guide have fallen, we expect 4Q22 top and bottom-line results about in line with sell-side consensus and expect the company to initiate 2023 revenue and margin guidance better than increasingly bearish expectations," the analysts wrote.

Meanwhile, BofA maintained a Buy rating and a $54 price target on the stock.

"Consensus estimates 20.55mn TTM active customers (-0.5% y/y), net sales of $2.64bn (vs. guidance of $2.63-$2.65bn implying 10-11% y/y growth), and Adj. EBITDA of $25.6mn (1.0% margin). This is in line with our projected revenue/EBITDA of $2.64bn/$26mn," wrote analysts.

"We expect macro headwinds to continue pressuring discretionary spend, and biggest risk to the quarter is customer growth turning substantially negative again. We estimate 1Q revenue guidance of $2.68bn-$2.70bn (vs. Street at $2.69bn), implying +2% q/q revenue growth."

Chewy shares are down more than 4% on Wednesday at the time of writing.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.