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Chewy, Inc. (CHWY - Free Report) is expected to report top-line growth in its third-quarter fiscal 2022 results on Dec 8, after the market close. The Zacks Consensus Estimate for quarterly sales stands at $2,451 million, indicating an 11% increase from the last fiscal-year quarter’s reported figure.

However, Chewy’s bottom line is expected to decline from the last fiscal-year quarter’s reported figure. The Zacks Consensus Estimate for loss in the fiscal third quarter has been stable over the past 30 days at 8 cents a share. CHWY reported a loss per share of 3 cents in the year-earlier quarter.

This pet food and other pet-related supplier delivered an earnings surprise of 64.5%, on average, in the trailing four quarters. In the last reported fiscal quarter, Chewy recorded an earnings surprise of 141.7%.

Key Factors to Note

Chewy’s sales performance for the fiscal third quarter is quite likely to have benefited from its e-commerce channels, product assortments and innovation efforts. Management has been making technology upgrades for its website and online platforms for some time to drive online sales.

Higher product demand, robust consumer engagement and growth in active customers are steadily contributing to results. Additionally, CHWY’s pharmacy business bodes well.

However, the company’s quarterly performance might have been hurt by a tough macroeconomic environment, including headwinds like supply-chain issues and global inflationary pressures. These factors coupled with any deleverage in selling, general and administrative expenses might have affected CHWY’s performance in the fiscal third quarter.

What the Zacks Model Unveils

Our proven model does not conclusively predict an earnings beat for Chewy this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here as explained below. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.

Chewy Price and Consensus

Chewy price-consensus-chart | Chewy Quote

Chewy currently has a Zacks Rank #3 and an Earnings ESP of 0.00%.

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