4 Chewy Analysts Express Concerns Top-Line Challenges, How Pet Adoption Factors In
Portfolio Pulse from Anusuya Lahiri
Chewy Inc (CHWY) reported Q3 2023 results with revenue of $2.74 billion, missing estimates by $0.02 billion, but EPS of 15 cents beat the six-cent loss expected. Analysts from Needham, RBC Capital, Piper Sandler, and Morgan Stanley have expressed concerns over top-line challenges and adjusted their price targets accordingly. The company's stock price declined by 2% in aftermarket trading. Management is prepared for a potential demand moderation in FY24 and has already cut 8% of corporate employees. Analysts are looking forward to the company's investor day for insights on long-term strategies.
December 08, 2023 | 5:35 pm
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NEGATIVE IMPACT
Chewy Inc's Q3 revenue miss and lowered guidance have led to a decrease in stock price and revised price targets from analysts. The company is facing challenges with non-auto-ship sales and pet adoption rates, impacting revenue growth.
The negative impact on CHWY's stock price is due to the Q3 revenue miss and the lowered revenue guidance for Q4, which suggests slowing growth. Analysts' concerns and price target reductions reflect the market's reaction to these challenges. The company's proactive measures, such as workforce reduction, indicate management's acknowledgment of the issues, which may further influence investor sentiment.
CONFIDENCE 85
IMPORTANCE 90
RELEVANCE 100