Investors wagged their wallets in delight Thursday after Broward-based Chewy reported first-ever earnings and outlook that beat Wall Street expectations.
The country’s largest online pet supplies store, which went public in June, lost $15.8 million, excluding items like interest and tax payments, in its first quarter. That narrowly beat the $15.9 million predicted by Wall Street analysts. Revenues were in-line with analysts’ forecasts at $1.1 billion.
The company said it projects second-quarter revenues of between $1.12 and 1.14 billion., beating the expected $1.12 billion.
Company shares, which trade under the ticker CHWY, closed at $32.85, up almost 4 percent as investors hoped for strong results. After the close, when earnings were released, the price popped as much as 2.6 percent.
“We will continue to innovate with a keen focus on delivering the best customer experience as we execute on our mission to become the most trusted and convenient online destination for pet parents,” Sumit Singh, Chief Executive Officer of Chewy, said in a statement.
In the week leading up to its earning release, multiple banks began releasing price targets for the stock. UBS and JP Morgan are most bearish, with a target of $42. Bank of America, Wells Fargo, and Morgan Stanley have also initiated coverage.
Dania Beach-based Chewy was founded in 2011. It was acquired in 2017 by PetSmart and private equity group BC Capital for $3 billion. Its market cap is now $13.1 billion.