Chewy’s third quarter sales beat analysts’ forecast for sixth consecutive quarter
Continuing their streak of relative wins, the pet supply company soft (NYSE: CHWY) once again beat analyst consensus estimates with its third quarter earnings report, bringing the total back-to-back revenue beats to six quarters. Zacks Equity Research reports that Chewy’s loss per share was $ 0.08, beating the $ 0.15 per share Wall Street loss expected for a positive surprise of 46.7%. The turnover surprised positively about 3.5%.
Revenue, or sales, also managed to far outperform last year’s performance. Chewy’s $ 1.78 billion net revenue is a 45% jump from the third quarter 2019 figure. Additionally, although the company recorded a net loss of $ 32.8 million for the quarter, this is still a major improvement over last year’s net loss of $ 79 million. The net margin fell from -6.4% to -1.8% year-on-year.
In its letter to shareholders, filed with the SEC yesterday as part of a current 8-K report, the company also provided brief guidance for the fourth quarter of 2020 and expected results for the year. For the current quarter (Q4), Chewy forecasts net sales of $ 1.94 billion to $ 1.96 billion, which is 8.4% to 9.5% higher than the consensus forecast of 1.79 billion dollars from Wall Street analysts. It forecasts quarterly growth of 43% to 45% and 45% to 46% annual year-over-year net sales.
Chewy also highlighted its aggressive push into pet health as one of its main areas of growth. With COVID-19 seemingly accelerating pet ownership trends, or at least not hampering their rapid expansion, Chewy may have room for more growth in the coming year. , perhaps even breaking out of its pattern of net losses – although events such as Recently announced Petco IPO also report increased competition in the near future.
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