Chewy (NYSE:CHWY) Posts Earnings Results, Misses Expectations By $0.19 EPS

Key Points

• Chewy reported quarterly earnings of $0.14 EPS, missing expectations by $0.19, while revenues reached $3.10 billion, exceeding analyst estimates of $3.08 billion.
• Despite missing earnings expectations, Chewy's stock saw a 1.5% increase following the earnings release, reflecting positive investor sentiment.
• Chewy has received multiple analyst upgrades, with a consensus rating of "Moderate Buy" and an average target price of $43.94.

Chewy (NYSE:CHWY - Get Free Report) announced its quarterly earnings data on Wednesday. The company reported $0.14 EPS for the quarter, missing the consensus estimate of $0.33 by ($0.19), RTT News reports. Chewy had a return on equity of 50.45% and a net margin of 1.22%.The company had revenue of $3.10 billion during the quarter, compared to the consensus estimate of $3.08 billion. During the same period in the prior year, the firm posted $0.24 EPS. The business's revenue was up 8.6% on a year-over-year basis. Chewy updated its FY 2025 guidance to EPS and its Q3 2025 guidance to 0.280-0.330 EPS.

Chewy Stock Performance

Chewy stock traded down $1.30 during midday trading on Friday, reaching $34.72. 13,551,107 shares of the stock were exchanged, compared to its average volume of 7,744,831. The company's fifty day moving average is $38.47 and its 200-day moving average is $38.31. The firm has a market cap of $14.42 billion, a PE ratio of 99.20, a PEG ratio of 7.54 and a beta of 1.65. Chewy has a 52 week low of $26.28 and a 52 week high of $48.62.

Insider Activity

In related news, CAO William G. Billings sold 20,142 shares of the company's stock in a transaction that occurred on Monday, August 4th. The shares were sold at an average price of $35.57, for a total transaction of $716,450.94. Following the sale, the chief accounting officer owned 29,464 shares of the company's stock, valued at approximately $1,048,034.48. This represents a 40.60% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. Also, CEO Sumit Singh sold 4,264 shares of the business's stock in a transaction that occurred on Monday, August 4th. The stock was sold at an average price of $35.57, for a total transaction of $151,670.48. Following the completion of the transaction, the chief executive officer directly owned 72,549 shares of the company's stock, valued at approximately $2,580,567.93. This represents a 5.55% decrease in their position. The disclosure for this sale can be found here. Over the last quarter, insiders sold 30,008,777 shares of company stock worth $1,252,444,321. Insiders own 0.43% of the company's stock.

Hedge Funds Weigh In On Chewy

A number of hedge funds and other institutional investors have recently bought and sold shares of CHWY. AQR Capital Management LLC grew its stake in Chewy by 231.1% in the 2nd quarter. AQR Capital Management LLC now owns 4,631,343 shares of the company's stock worth $196,323,000 after buying an additional 3,232,763 shares in the last quarter. State Street Corp grew its stake in Chewy by 75.5% in the 2nd quarter. State Street Corp now owns 6,170,197 shares of the company's stock worth $262,974,000 after buying an additional 2,654,496 shares in the last quarter. Raymond James Financial Inc. grew its stake in Chewy by 85.4% in the 2nd quarter. Raymond James Financial Inc. now owns 3,027,144 shares of the company's stock worth $129,017,000 after buying an additional 1,394,509 shares in the last quarter. Man Group plc grew its stake in Chewy by 522.1% in the 2nd quarter. Man Group plc now owns 1,444,343 shares of the company's stock worth $61,558,000 after buying an additional 1,212,178 shares in the last quarter. Finally, Scopus Asset Management L.P. grew its stake in Chewy by 55.9% in the 2nd quarter. Scopus Asset Management L.P. now owns 1,402,228 shares of the company's stock worth $59,763,000 after buying an additional 502,796 shares in the last quarter. Hedge funds and other institutional investors own 93.09% of the company's stock.

Analyst Ratings Changes

Several analysts have recently issued reports on the stock. Needham & Company LLC reissued a "hold" rating on shares of Chewy in a research report on Thursday. Jefferies Financial Group reissued a "hold" rating and issued a $43.00 price target (up previously from $41.00) on shares of Chewy in a research report on Thursday, June 5th. Wedbush reissued an "outperform" rating and issued a $45.00 price target on shares of Chewy in a research report on Thursday. Barclays lowered their price target on shares of Chewy from $50.00 to $47.00 and set an "overweight" rating on the stock in a research report on Thursday. Finally, Deutsche Bank Aktiengesellschaft raised shares of Chewy from a "hold" rating to a "buy" rating and set a $45.00 price target on the stock in a research report on Thursday. Two equities research analysts have rated the stock with a Strong Buy rating, nineteen have issued a Buy rating and four have assigned a Hold rating to the company's stock. According to data from MarketBeat, the stock has a consensus rating of "Moderate Buy" and an average target price of $45.72.

Chewy Company Profile

Chewy, Inc, together with its subsidiaries, engages in the pure play e-commerce business in the United States. It provides pet food and treats, pet supplies and pet medications, and other pet-health products, as well as pet services for dogs, cats, fish, birds, small pets, horses, and reptiles through its retail websites and mobile applications.