Before markets opened on Tuesday, Best Buy beat consensus earnings per share (EPS) and revenue estimates, and it issued in-line guidance for fiscal 2024. The stock traded up 2.2% shortly after Tuesday’s opening bell.
Big Lots also beat Wall Street’s estimates on both the top and bottom lines. Not much was expected (a loss per share of $4.12 and an 18.5% drop in revenue), but Big Lots beat the loss per share estimate by $0.87 and the revenue estimate by enough to hold the year-over-year decline to 15.4%. Shares soared nearly 17%.
Nio reported results that failed to reach either the loss-per-share or revenue estimate. Sales fell by nearly 15% year over year. Even upside guidance could not overcome the disappointing outcome in a quarter when most analysts and investors were expecting bad news–just somewhat less of it. Shares traded down almost 13%.
Hewlett Packard Enterprise and HP are reporting quarterly results after markets close Tuesday. There are no notable earnings reports due out early Wednesday morning.
Here is a look at what analysts expect when these four companies release quarterly results after U.S. markets close on Wednesday.
Chewy Inc. (NYSE: CHWY) is a pure-play e-commerce provider of pet supplies and a one-time subsidiary of privately held PetSmart. Over the past 12 months, the stock has slipped by about 31.5%, including a drop of nearly 39% in 2023. Half of that loss came in the past three months, and the six-month decline was nearly 36%.
Chewy reported better-than-expected revenue in the April quarter and met EPS estimates. However, the company’s customer base declined, and the falling stock price indicates that investors are not expecting much improvement in the July quarter. The good news for Chewy is that the bar has been set pretty low.
Analysts remain bullish on the stock. Of 27 brokerages covering Chewy, 15 have a Buy or Strong Buy rating, while 11 more have Hold ratings. At a recent price of $26.00 a share, the upside potential to a median price target of $44.00 is 69.2%. At the high price target of $56.00, the upside potential is 115%.
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Revenue in the second quarter of fiscal 2024 is forecast to come in at $2.76 billion, which would be down about 0.9% sequentially but up 9.5% year over year. Analysts expect EPS of $0.09, up a penny sequentially and about 80% higher year over year. For the full 2024 fiscal year that ends in January, analysts forecast EPS of $0.53, up 256.4%, on sales of $11.3 billion, up 11.9%.
Chewy stock trades at 48.8 times expected 2024 EPS, 38.1 times estimated 2025 earnings of $0.68 and 29.6 times estimated 2026 earnings of $0.88 per share. Its 52-week trading range is $22.22 to $52.88. Chewy does not pay a dividend. Total shareholder return for the past year is negative 31.50%.
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