Chewy stocks fell more than 10% in late trading on Thursday, as the Zacks Consumer Products – Staples industry reported poor earnings for the fiscal quarter ending October 31. Despite a 24% increase in quarterly sales, the stock price dropped.
The Chewy (CHWY) stock was down 6% since the previous close when writing this article. And the stock is currently worth $56.30.
According to the Zacks Consensus Estimate, Chewyreported a quarterly loss of $0.03 per share versus a loss of $0.05 compared to a $0.08 loss per share the previous year. Non-recurring items have been removed from these values.
This quarter’s earnings release represents a 40% earnings surprise. Chewy was predicted to generate a loss of $0.02 per share a quarter ago, but it posted a loss of $0.04, delivering a -100% surprise.
The company has outperformed consensus EPS projections three times in the last four quarters.
For the quarter ending October 2021, the online retailer of pet food and other pet-related products reported revenue of $2.21 billion, which was 0.01 percent higher than the Zacks Consensus Estimate. Compared to $1.78 billion in revenue the same quarter the previous year. Over the last four quarters, the company has surpassed consensus revenue projections three times.
Chewy’s stock has dropped 33.1% since the start of the year, compared to 25.2 percent for the S&P 500. The stock currently has a Zacks Rank #5 (Strong Sell) due to its present situation. As a result, the stock is likely to underperform the market in the foreseeable future.
