These Analysts Cut Their Forecasts On Chewy After Q3 Results
Portfolio Pulse from Avi Kapoor
Chewy, Inc. (NYSE:CHWY) reported Q3 adjusted earnings of $0.15 per share, beating estimates but missed revenue expectations with $2.74 billion against the forecasted $2.76 billion. The company also reduced its FY23 net sales guidance from $11.15-$11.35 billion to $11.08-$11.10 billion. Following the results, Barclays and Needham revised their price targets for Chewy to $19 and $20, respectively, with Barclays maintaining an Equal-Weight rating and Needham maintaining a Buy rating. Chewy's stock rose 5.1% to close at $19.35.
December 07, 2023 | 12:29 pm
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NEUTRAL IMPACT
Chewy exceeded Q3 EPS estimates but missed on revenue and lowered FY23 sales guidance. Analysts at Barclays and Needham revised their price targets to $19 and $20, respectively.
Despite beating EPS estimates, the revenue miss and lowered sales guidance are mixed signals that may temper investor enthusiasm. The stock price increase indicates a positive short-term reaction, but analyst downgrades in price targets could suggest a more cautious outlook. The score is neutral as the positive earnings beat is offset by the negative guidance revision and price target cuts.
CONFIDENCE 90
IMPORTANCE 75
RELEVANCE 100