Yahoo Finance Results: Chewy, Inc. Beat Earnings Expectations And Analysts Now Have New Forecasts
The investors in Chewy, Inc.'s (NYSE:CHWY) will be rubbing their hands together with glee today, after the share price leapt 28% to US$21.21 in the week following its first-quarter results. Revenues were US$2.9b, approximately in line with whatthe analysts expected, although statutory earnings per share (EPS) crushed expectations, coming in at US$0.15, an impressive 291% ahead of estimates. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.
View our latest analysis for Chewy
Taking into account the latest results, the current consensus from Chewy's 26 analysts is for revenues of US$11.8b in 2025. This would reflect an okay 4.7% increase on its revenue over the past 12 months. Per-share earnings are expected to rise 2.2% to US$0.20. In the lead-up to this report, the analysts had been modelling revenues of US$11.7b and earnings per share (EPS) of US$0.11 in 2025. There was no real change to the revenue estimates, but the analysts do seem more bullish on earnings, given the sizeable expansion in earnings per share expectations following these results.
The consensus price target rose 8.4% to US$25.12, suggesting that higher earnings estimates flow through to the stock's valuation as well. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. The most optimistic Chewy analyst has a price target of US$35.00 per share, while the most pessimistic values it at US$16.00. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business.
Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. We would highlight that Chewy's revenue growth is expected to slow, with the forecast 6.4% annualised growth rate until the end of 2025 being well below the historical 20% p.a. growth over the last five years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 4.9% per year. So it's pretty clear that, while Chewy's revenue growth is expected to slow, it's still expected to grow faster than the industry itself.
The Bottom Line
The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Chewy's earnings potential next year. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. There was also a nice increase in the price target, with the analysts clearly feeling that the intrinsic value of the business is improving.
With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have estimates - from multiple Chewy analysts - going out to 2027, and you can see them free on our platform here.
You should always think about risks though. Case in point, we've spotted 1 warning sign for Chewy you should be aware of.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
