The upcoming report from Chewy (CHWY) is expected to reveal quarterly earnings of $0.43 per share, indicating an increase of 22.9% compared to the year-ago period. Analysts forecast revenues of $3.35 billion, representing an increase of 7.6% year over year.
The current level reflects a downward revision of 2.2% in the consensus EPS estimate for the quarter over the past 30 days. This demonstrates how the analysts covering the stock have collectively reappraised their initial projections over this period.
Before a company reveals its earnings, it is vital to take into account any changes in earnings projections. These revisions play a pivotal role in predicting the possible reactions of investors toward the stock. Multiple empirical studies have consistently shown a strong association between trends in earnings estimates and the short-term price movements of a stock.
While investors typically use consensus earnings and revenue estimates as a yardstick to evaluate the company's quarterly performance, scrutinizing analysts' projections for some of the company's key metrics can offer a more comprehensive perspective.
That said, let's delve into the average estimates of some Chewy metrics that Wall Street analysts commonly model and monitor.
According to the collective judgment of analysts, 'Net Sales- Consumables' should come in at $2.31 billion. The estimate suggests a change of +6.2% year over year.
The consensus estimate for 'Net Sales- Other' stands at $651.59 million. The estimate indicates a change of +9.4% from the prior-year quarter.
The average prediction of analysts places 'Net Sales- Hardgoods' at $384.06 million. The estimate indicates a year-over-year change of +12.2%.
Analysts predict that the 'Active customers' will reach 21,595 . Compared to the present estimate, the company reported 20,756 in the same quarter last year.
Analysts expect 'Net sales per active customer' to come in at $597.56 . The estimate is in contrast to the year-ago figure of $583.00 .
View all Key Company Metrics for Chewy here>>>Over the past month, shares of Chewy have returned -12% versus the Zacks S&P 500 composite's +5.5% change. Currently, CHWY carries a Zacks Rank #3 (Hold), suggesting that its performance may align with the overall market in the near future. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .
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This article originally published on Zacks Investment Research (zacks.com).