Chewy Stock Could Be on a Bull Run After a Blockbuster Quarter -- Should You Buy Now?
The odds were stacked against Chewy (NYSE: CHWY) going into the company's fiscal 2022 first-quarter earnings report (for the three months ended May 1) thanks to multiple tailwinds such as a broken supply chain, surging inflation, and a labor shortage, but the online retailer of pet products and supplies overcame those challenges to deliver a solid earnings report on June 1.
Chewy stock surged 24% in extended trading following its results as investors were surprised that the company posted a profit when analysts were looking for a loss. However, there was a chance of Chewy delivering stronger-than-expected results as management had hinted toward improvements in the business environment earlier this year.
The good part is that those improvements paid off for Chewy last quarter. Chewy's fiscal Q1 revenue increased 13.7% year over year to $2.43 billion, which was the higher end of its guidance range and exceeded the consensus estimate of $2.41 billion. The e-commerce specialist delivered a profit of $0.04 per share, which was a major surprise as Wall Street was looking for a loss of $0.11 per share.
Source Fool.com
