Why Chewy (CHWY) Could Beat Earnings Estimates Again

Group 1 - Chewy (CHWY) is well-positioned to maintain its earnings-beat streak, with an average surprise of 28.35% over the past two quarters [1][3] - In the last reported quarter, Chewy's earnings were $0.24 per share, exceeding the Zacks Consensus Estimate of $0.22 per share, resulting in a surprise of 9.09% [2] - The previous quarter saw Chewy outperform expectations significantly, reporting earnings of $0.31 per share against an estimate of $0.21 per share, leading to a surprise of 47.62% [2] Group 2 - Chewy's estimates have been trending higher due to its history of earnings surprises, and it currently has a positive Earnings ESP of +3.23% [3][6] - The combination of a positive Earnings ESP and a Zacks Rank 3 (Hold) indicates a strong potential for another earnings beat, with the next report expected on December 4, 2024 [6] - Research indicates that stocks with a positive Earnings ESP and a Zacks Rank of 3 or better have a nearly 70% chance of producing a positive surprise [4]