Chewy Q3 Preview: Will Pet Care Stock See Customer Growth? Analysts See Higher Share Price

Pet care company Chewy Inc (NYSE:CHWY) could highlight growth for the sector when the company reports third-quarter financial results on Wednesday before market open.

• Chewy stock is showing downward pressure. Where is CHWY stock headed?

Here are the earnings estimates, what experts are saying ahead of the earnings and key items to watch.

Earnings Estimates: Analysts expect Chewy to report third-quarter revenue of $3.10 billion, up from $2.88 billion in last year's third quarter, according to data from Benzinga Pro.

The company has beaten analyst estimates for revenue in three straight quarters and in seven of the past 10 quarters overall.

Analysts expect Chewy to report third-quarter earnings per share of 12 cents, down from 20 cents per share in last year's third quarter.

The company has beaten analyst estimates for earnings per share in more than 10 straight quarters.

Guidance from the company calls for third-quarter revenue in a range of $3.07 billion to $3.10 billion and earnings per share in a range of 28 cents per share to 33 cents per share.

What Experts Are Saying: JPMorgan analyst Doug Anmuth expects Chewy to report strong third-quarter results and also report strong full-year guidance.

The analyst maintained an Overweight rating on the stock with a $45 price target ahead of earnings.

Anmuth said Chewy is "leaning into growth initiatives," which could support market share and revenue gains.

The analyst forecasts Chewy posting active customer net additions of more than 160,000 in the third quarter and 718,000 new adds for the full fiscal year.

"With strong execution, we believe CHWY could modestly raise FY25 guidance above the current $12.50B-$12.60B net sales," Anmuth said.

Here are other recent analyst ratings on Chewy and their price targets on the stock:

• UBS: Maintained Neutral rating, lowered price target from $43 to $41
• Citigroup: Maintained Buy rating, lowered price target from $48 to $42
• Mizuho: Maintained Outperform rating, with price target of $50

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Key Items to Watch: Chewy's third quarter will include August, September and October, which could point to guidance being more important than the results.

The fourth quarter will include results of Black Friday and the holiday shopping season, which could prove to be friendly to the pet sector.

Bank of America Research analyst Michael McGovern highlighted the pet care sector as being a recent holiday e-commerce winner.

A report said the pet health care sector is seeing "continued demand," which McGovern said could benefit Chewy.

The analyst, who has a $46 price target on Chewy, said millennials and Gen Z consumers are helping to boost the demand for the pet sector.

For Chewy's earnings, key areas to watch will be customer additions and the company's Autoship customers.

In the second quarter, Autoship customer sales were up 14.9% year-over-year to $2.58 billion. This segment is a recurring delivery program that represents over 80% of the company's sales.

The company highlighted strong sales, active customers and share of wallet growth in the quarter.

Chewy previously raised its full-year sales guidance after the second quarter and investors and analysts could be expecting another guidance increase once again.

CHWY Price Action: Chewy stock traded down 1.01% at $34.27 on Tuesday versus a 52-week trading range of $29.83 to $48.62. Chewy shares are up 2.6% year-to-date in 2025.

Read Next:

• Chewy Analysts Slash Their Forecasts Following Q2 Results

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