Chewy Stock Is Running Thursday: What's Going On?

Chewy Inc CHWY shares are trading higher Thursday after the company reported a year-over-year increase in earnings and better-than-expected revenue numbers. Multiple analysts also lifted price targets following the print.

What Happened: Chewy said first-quarter revenue increased 14.7% year-over-year to $2.78 billion, which beat consensus estimates of $2.73 billion, per Benzinga Pro.

The company reported adjusted quarterly earnings of 20 cents per share, up significantly on a year-over-year basis. Gross margin was 28.4%, net margin came in at 0.8%. 

"2023 is off to a strong start for Chewy. Our first quarter results reflect accelerating double-digit topline growth and continued expansion of adjusted EBITDA margin," said Sumit Singh, CEO of Chewy.

"Net sales per active customer and Autoship customer sales also both reached new record highs for the company and continued to fuel customer loyalty and spend towards our platform."

Analyst Changes:

• Gordon Haskett analyst Greg Sommer upgraded Chewy from Hold to Buy and announced a $40 price target.
• Needham analyst Anna Andreeva reiterated Chewy with a Buy and maintained a $55 price target.
• Barclays analyst Trevor Young maintained Chewy with an Equal-Weight and raised the price target from $33 to $35.
• Morgan Stanley analyst Lauren Schenk maintained Chewy with an Equal-Weight and raised the price target from $30 to $32.
• UBS analyst Joseph Parkhill maintained Chewy with a Sell and raised the price target from $24 to $26.

See Also: Why Conn's Shares Are Sliding Today

CHWY Price Action: Chewy has a 52-week high of $52.88 and a 52-week low of $22.97.

The stock was up 19% at $35.10 at the time of publication, per Benzinga Pro.

Photo: Radovan Zierik from Pixabay.