Simply Wall St
3 min read
Last week, you might have seen that Chewy, Inc. (NYSE:CHWY) released its quarterly result to the market. The early response was not positive, with shares down 6.4% to US$19.31 in the past week. It looks like the results were a bit of a negative overall. While revenues of US$3.4b were in line with analyst predictions, statutory earnings were less than expected, missing estimates by 4.0% to hit US$0.23 per share. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Chewy after the latest results.
Taking into account the latest results, the most recent consensus for Chewy from 23 analysts is for revenues of US$13.5b in 2027. If met, it would imply a modest 5.1% increase on its revenue over the past 12 months. Per-share earnings are expected to bounce 24% to US$0.77. In the lead-up to this report, the analysts had been modelling revenues of US$13.7b and earnings per share (EPS) of US$0.89 in 2027. The analysts seem to have become more bearish following the latest results. While there were no changes to revenue forecasts, there was a real cut to EPS estimates.
View our latest analysis for Chewy
The average price target fell 20% to US$31.24, with reduced earnings forecasts clearly tied to a lower valuation estimate. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. Currently, the most bullish analyst values Chewy at US$42.00 per share, while the most bearish prices it at US$22.00. Note the wide gap in analyst price targets? This implies to us that there is a fairly broad range of possible scenarios for the underlying business.
These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Chewy's past performance and to peers in the same industry. We would highlight that Chewy's revenue growth is expected to slow, with the forecast 6.9% annualised growth rate until the end of 2027 being well below the historical 9.2% p.a. growth over the last five years. Compare this to the 151 other companies in this industry with analyst coverage, which are forecast to grow their revenue at 6.0% per year. So it's pretty clear that, while Chewy's revenue growth is expected to slow, it's expected to grow roughly in line with the industry.