U.S. markets open in 3 hours 47 minutes
  • S&P Futures

    4,253.25
    +21.75 (+0.51%)
     
  • Dow Futures

    33,945.00
    +186.00 (+0.55%)
     
  • Nasdaq Futures

    14,354.00
    +91.00 (+0.64%)
     
  • Russell 2000 Futures

    2,314.70
    +14.40 (+0.63%)
     
  • Crude Oil

    73.19
    +0.11 (+0.15%)
     
  • Gold

    1,780.70
    -2.70 (-0.15%)
     
  • Silver

    26.05
    -0.07 (-0.25%)
     
  • EUR/USD

    1.1943
    +0.0010 (+0.08%)
     
  • 10-Yr Bond

    1.4870
    0.0000 (0.00%)
     
  • Vix

    15.57
    -1.09 (-6.54%)
     
  • GBP/USD

    1.3956
    -0.0007 (-0.05%)
     
  • USD/JPY

    110.8410
    -0.1210 (-0.11%)
     
  • BTC-USD

    33,506.24
    -507.87 (-1.49%)
     
  • CMC Crypto 200

    809.08
    -1.12 (-0.14%)
     
  • FTSE 100

    7,088.52
    +14.46 (+0.20%)
     
  • Nikkei 225

    28,875.23
    +0.34 (+0.00%)
     

Chewy (CHWY) to Report Q4 Earnings: What's in the Cards?

  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
·3 min read
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.

Chewy, Inc. CHWY is slated to report fourth-quarter fiscal 2020 numbers on Mar 30 after market close. In fact, the Zacks Consensus Estimate for the fourth quarter is pegged at a loss of 10 cents, which has been stable over the past 30 days. We note that the consensus mark is wider than a loss of 4 cents a share recorded in the year-earlier quarter. However, the consensus estimate for quarterly sales stands at $1,963 million, indicating an increase of 44.9% from the year-ago quarter.

Notably, this pet food and other pet-related supplier delivered an earnings surprise of 40.2%, on average, in the trailing four quarters.

Key Factors to Note

Chewy’s fourth-quarter performance might have been hurt by deleveraged operating expenses, including SG&A, advertising and marketing. Moreover, investments related to the launch of fulfillment centers, bonuses and costs tied to the pandemic are resulting in higher expenses. In addition, stiff competition in the industry is a headwind. These factors might have weighed on Chewy’s bottom-line performance in the to-be-reported quarter.

On a positive note, the company has been witnessing strength in e-commerce and increased pet ownership. Moreover, customers are responding positively toward the company’s assortment that includes innovative products and service launches. Also, its pharmacy operations bode well. Management has also launched Medication Compounding and Connect with the Vet– the company’s proprietary telehealth platform to make pet healthcare affordable. Such strengths are expected to have contributed to overall sales in the quarter.

What the Zacks Model Unveils

Our proven model doesn’t conclusively predict an earnings beat for Chewy this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Chewy Inc. Price and EPS Surprise

Chewy Inc. Price and EPS Surprise
Chewy Inc. Price and EPS Surprise

Chewy Inc. price-eps-surprise | Chewy Inc. Quote

Although Chewy has a Zacks Rank #2, its Earnings ESP of 0.00% makes surprise prediction difficult.

Stocks Poised to Beat Earnings Estimates

Here are some companies that you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat:

The Estee Lauder Companies EL has an Earnings ESP of +15.26% and a Zacks Rank of 2. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Boston Beer Company SAM currently has an Earnings ESP of +9.58% and a Zacks Rank #3.

Philip Morris International PM has an Earnings ESP of +0.36 % and a Zacks Rank #3, presently.

Zacks Names “Single Best Pick to Double”

From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.

You know this company from its past glory days, but few would expect that it’s poised for a monster turnaround. Fresh from a successful repositioning and flush with A-list celeb endorsements, it could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in a little more than 9 months and Nvidia which boomed +175.9% in one year.

Free: See Our Top Stock and 4 Runners Up >>


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

The Estee Lauder Companies Inc. (EL) : Free Stock Analysis Report

The Boston Beer Company, Inc. (SAM) : Free Stock Analysis Report

Chewy Inc. (CHWY) : Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research