Chewy (CHWY) Reports Q2: Everything You Need To Know Ahead Of Earnings

E-commerce pet food and supplies retailer Chewy (NYSE:CHWY) will be announcing earnings results tomorrow before the bell. Here’s what to look for.

Chewy beat analysts’ revenue expectations by 1.2% last quarter, reporting revenues of $2.88 billion, up 3.1% year on year. It was a weaker quarter for the company, with slow revenue growth.

Is Chewy a buy or sell going into earnings? Read our full analysis here, it’s free.

This quarter, analysts are expecting Chewy’s revenue to grow 2.5% year on year to $2.86 billion, slowing from the 14.6% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.21 per share.

The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Chewy has missed Wall Street’s revenue estimates twice over the last two years.

Looking at Chewy’s peers in the online retail segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Carvana delivered year-on-year revenue growth of 14.9%, beating analysts’ expectations by 4.6%, and Revolve reported revenues up 3.2%, topping estimates by 1.9%. Carvana traded up 10% following the results while Revolve was also up 32.5%.

Read our full analysis of Carvana’s results here and Revolve’s results here.

Investors in the online retail segment have had steady hands going into earnings, with share prices flat over the last month. Chewy is up 5.7% during the same time and is heading into earnings with an average analyst price target of $27.7 (compared to the current share price of $25.77).

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