It was a winning first quarter for (NYSE: CHWY). Its shares surged over 27% following the release of its Q1 earnings report as its sales topped estimates and the company announced a new buyback plan.

Is the recent investor enthusiasm warranted for this online retailer of pet products? Let's take a closer look at the latest earnings report and see whether or not it is too late to buy the stock.

For its fiscal Q1, which ended in April, Chewy saw its sales rise 3% to $2.88 billion. Autoship sales rose over 6% to $2.2 billion, while net sales per active customer (NSPAC) climbed nearly 10% to $562. These metrics are important, as autoship sales are recurring in nature, while the NSPAC figure shows that customers are spending more. Investors typically value recurring-revenue businesses with higher multiples given that they are more predictable.

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Source Fool.com