Chewy Q4 adj EPS top estimates on customer, margin growth
Overview
US pet products e-tailer reported fiscal Q4 revenue up slightly, slightly missing analyst expectations
Adjusted EPS for fiscal Q4 beat analyst expectations
Company attributed results to strong customer growth and expanding margins
Outlook
Company did not provide specific guidance for the current qtr or full yr
Result Drivers
GROSS MARGIN EXPANSION - Gross margin rose 90 basis points year-over-year in Q4, contributing to improved profitability
CUSTOMER GROWTH - Active customers increased 4% year-over-year, with net sales per active customer up 2.2%
AUTOSHIP SALES - Autoship customer sales rose 4.8% and accounted for 84% of net sales in Q4 vs 80.6% a year ago
Company press release: ID:nBw8vpFPCa
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q4 Revenue | Slight Miss* | $3.26 bln | $3.29 bln (23 Analysts) |
Q4 Adjusted EPS | Beat | $0.27 | $0.09 (15 Analysts) |
Q4 Net Income |
| $39.20 mln |
|
*Applies to a deviation of less than 1%; not applicable for per-share numbers.
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 22 "strong buy" or "buy", 6 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the miscellaneous specialty retailers peer group is "buy"
Wall Street's median 12-month price target for Chewy Inc is $45.00, about 91.9% above its March 24 closing price of $23.45
The stock recently traded at 26 times the next 12-month earnings vs. a P/E of 48 three months ago
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