Chewy (CHWY) shares dropped 4.93% to $20.46 on July 23, trailing the broader market. The decline came as analysts trimmed earnings estimates ahead of the company's upcoming quarterly report.
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Chewy falls 4.9% as earnings estimates slip ahead of Q2 report
Chewy (CHWY) shares dropped 4.93% to $20.46 on July 23, trailing the broader market as the S&P 500 fell 1.21%. The decline came as the Zacks Consensus EPS estimate for the online pet retailer shifted 0.78% lower over the past month.
The stock's move outpaced losses across major indices, with the Dow down 0.97% and the Nasdaq losing 2.15%. Despite the single-day decline, Chewy shares have gained 13.2% over the past month, outperforming the Retail-Wholesale sector's 2.27% advance and the S&P 500's 0.42% rise.
Analysts expect Chewy to report earnings per share of $0.36 in its upcoming quarterly results, up 9.09% from the prior-year period. Revenue is projected at $3.32 billion, representing 6.83% year-over-year growth. For the full fiscal year, the consensus calls for EPS of $1.53 and revenue of $13.49 billion, implying increases of 20.47% and 7.06%, respectively.
Chewy carries a Zacks Rank of #5 (Strong Sell), reflecting the downward revision trend. The stock trades at a forward price-to-earnings ratio of 14.09, a discount to the Internet-Commerce industry average of 16.93. Its PEG ratio of 0.57, which accounts for expected earnings growth, compares favorably with the industry's 1.11. The industry itself ranks in the bottom 36% of all Zacks-tracked sectors, at No. 158 out of more than 250.
The decline puts Chewy under pressure ahead of its next earnings release, when investors will scrutinize whether the company can reverse the estimate revision trend. The stock's 13.2% monthly gain suggests some optimism remains, but the Zacks Strong Sell rating signals that analysts see further downside risk if results disappoint.
This article is for informational purposes only and does not constitute investment advice.
