Microsoft strongly encourages users to switch to a different browser than Internet Explorer as it no longer meets modern web and security standards. Therefore we cannot guarantee that our site fully works in Internet Explorer. You can use Chrome or Firefox instead.

Why Chewy Stock Is Sinking This Week

TheMotleyFool

0 0

Shares of leading online pet goods retailer (NYSE: CHWY) are down 15% this week as of 1 p.m. ET on Thursday, according to data provided by S&P Global Market Intelligence. Chewy reported second-quarter earnings on Wednesday, delivering a 9% increase in sales and a 38% rise in adjusted earnings per share (EPS).

However, management guided for a slower 7.5% sales growth and just $0.30 in adjusted EPS (down from $0.33 in Q2) in its upcoming quarter, prompting this week's sell-off.

Drops like these are peculiar. Yes, guidance was a bit conservative, but there's a solid chance that Chewy ends up beating its estimates anyway in the upcoming quarter.

Source Fool.com