Chewy.com smashed earnings estimates for its fiscal first quarter on Wednesday, announced its first share buyback program and signaled a recovering pet market. Chewy stock gapped above a key support level for the first time in roughly a year.
Chewy Earnings
Chewy earnings soared 200% year over year to 15 cents per share as sales grew 3% to $2.88 billion, FactSet shows. Analysts expected the pet-food maker to deliver four cents a share for the quarter ended April 28.
On Wednesday, the provider of pet supplies said its board has authorized up to $500 million in repurchases of its class A and/or class B common stock, starting this quarter.
Further, management said the pet industry is showing signs of recovery.
Chewy Stock
Shares of Chewy gapped up 27.1% to 21.49 in big volume on the stock market today. Chewy stock reclaimed the downward-sloping 200-day moving average for the first time in almost a year.
The 50-day line for Chewy stock remains stuck below the longer 200-day line, a sign of recent woes. In the latest fiscal year ended in January, Chewy earnings collapsed 25%.
