Chewy's Q4 Earnings Top Estimates, Sales Increase 14.9% Y/Y

Chewy, Inc. CHWY reported solid fourth-quarter fiscal 2024 results, wherein both top and bottom lines beat the Zacks Consensus Estimate and increased year over year.The company delivered top-line growth that exceeded the high-end of its net sales guidance. Its strong performance was driven by robust active customer growth and high Autoship customer loyalty.CHWY’s Quarterly Performance: Key Metrics and InsightsChewy posted adjusted earnings of 28 cents per share, which beat the Zacks Consensus Estimate of 21 cents. The figure increased 55.6% from the prior-year period.Find the latest EPS estimates and surprises on Zacks Earnings Calendar.Chewy Price, Consensus and EPS Surprise Chewy price-consensus-eps-surprise-chart | Chewy QuoteThe company reported net sales of $3,247.4 million, surpassing the Zacks Consensus Estimate of $3,196 million. The figure increased 14.9% from $2,825.9 million posted in the year-ago period.Chewy’s gross profit increased 16% year over year to $926 million. The gross margin expanded 30 basis points (bps) to 28.5% compared with 28.2% in the fourth quarter of fiscal 2023.SG&A expenses rose 11.9% year over year to $700.7 million in the quarter. As a percentage of net sales, SG&A expenses decreased 60 bps year over year to 21.6%.The adjusted EBITDA was $124.5 million, an increase from $86.5 million reported in the year-ago quarter. The adjusted EBITDA margin increased 70 bps year over year to 3.8%.CHWY’s Financial Health SnapshotChewy exited the quarter with cash and cash equivalents of $595.8 million and total shareholders’ equity of $261.5 million.During the fiscal fourth quarter, net cash provided by operating activities totaled $207.5 million, while free cash flow was reported at $156.6 million.What to Expect From CHWY in the Future?For the first quarter of fiscal 2025, management projects net sales between $3.06 billion and $3.09 billion, reflecting 6-7% growth year over year. Adjusted earnings are expected to be between 30 cents and 35 cents per share.For fiscal 2025, Chewy anticipates net sales between $12.30 billion and $12.45 billion, indicating a 6-7% year-over-year increase. The company expects an adjusted EBITDA margin of 5.4-5.7%, up from 4.8% reported in fiscal 2024.This Zacks Rank #2 (Buy) stock has gained 12.2% in the past six months compared with the industry’s growth of 10.1%.Image Source: Zacks Investment ResearchOther Stocks to ConsiderCentral Garden & Pet CENT, one of the leading companies in the U.S. pet supplies and lawn and garden supplies space, sports a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.Central Garden delivered a trailing four-quarter earnings surprise of 208.7%, on average. The Zacks Consensus Estimate for CENT’s current year sales and earnings indicates increases of 1% and 10.8%, respectively, from the year-ago period’s reported levels.Sprouts Farmers SFM, which is engaged in the retailing of fresh, natural and organic food products, currently carries a Zacks Rank #2. SFM delivered a trailing four-quarter earnings surprise of 15.1%, on average.The Zacks Consensus Estimate for Sprouts Farmers’ current financial-year sales and earnings implies growth of 11.9% and 24.3%, respectively, from the year-ago reported numbers.Farmer Bros. Co. FARM engages in the roasting, wholesale, equipment servicing and distribution of coffee, tea and other allied products in the United States. It currently holds a Zacks Rank #2. FARM delivered a trailing four-quarter earnings surprise of 34.9%, on average.The Zacks Consensus Estimate for Farmer Bros.’ current financial-year sales and earnings implies growth of 3.3% and 25%, respectively, from the year-ago period’s reported figures.Zacks Names #1 Semiconductor StockIt's only 1/9,000th the size of NVIDIA which skyrocketed more than +800% since we recommended it. NVIDIA is still strong, but our new top chip stock has much more room to boom.With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $803 billion by 2028.See This Stock Now for Free >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Central Garden & Pet Company (CENT): Free Stock Analysis Report Farmer Brothers Company (FARM): Free Stock Analysis Report Sprouts Farmers Market, Inc. (SFM): Free Stock Analysis Report Chewy (CHWY): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks