These Analysts Boost Their Forecasts On Chewy Following Earnings Beat

Chewy Inc. CHWY on Wednesday reported better-than-expected earnings for the fourth quarter.

The company posted a fourth-quarter adjusted EPS of 28 cents, up 55.6% year-over-year, compared to the consensus of $0.05. The retailer of pet supplies reported sales of $3.25 billion. That’s up 14.9% year over year, compared to the consensus of $3.2 billion and the management guidance of $3.18 billion-$3.2 billion.

“Topline growth and profitability exceeded the high-end of our guidance ranges for both the fourth quarter and full year 2024,” said Sumit Singh, CEO of Chewy. “Our performance was underpinned by strong active customer growth, and compelling Autoship customer loyalty. As we embark on 2025, the momentum in the business has remained strong and we remain committed to executing Chewy’s strategic priorities as we continue to drive innovation across the pet category.”

For fiscal year 2025, the company expects sales of $12.30 billion-$12.45 billion compared to Wall Street estimate of $12.42 billion, with year-over-year growth of around 6% to 7%. The company expects a 2025 adjusted EBITDA margin of 5.4%-5.7%

For the first quarter of 2025, Chewy expects sales of $3.06 billion-$3.09 billion compared to the consensus of $3.05 billion. The company expects first-quarter adjusted EPS of $0.30-$0.35 versus consensus $0.17.

Chewy shares rose 1.3% to trade at $33.69 on Thursday.

These analysts made changes to their price targets on Chewy following earnings announcement.

• Barclays analyst Trevor Young maintained Chewy with an Overweight rating and raised the price target from $40 to $44.
• JP Morgan analyst Doug Anmuth maintained the stock with an Overweight rating and boosted the price target from $38 to $40.
• Wedbush analyst Seth Basham, meanwhile, reiterated Chewy with an Outperform and maintained a $39 price target

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