Chewy (NYSE:CHWY) stock is taking a beating on Friday following the release of its earnings report for the first quarter of 2021.
The bad news from Chewy’s earnings report doesn’t have to do with its most recent results. The company beat out Wall Street’s estimates with its earnings per share of 9 cents and revenue of $2.14 billion. Analysts were expecting losses per share of 3 cents on revenue of $2.13 billion.
So why did CHWY stock suffer even with these positive results? It all has to do with the company’s outlook for the rest of the year. While it doesn’t provide specific numbers, the company’s comments weren’t positive.
Here’s the statement in CHWY’s letter to shareholders that has the stock down today.
“While we are pleased with our net sales in the quarter, elevated out-of-stock levels were a persistent headwind throughout the quarter and reduced our first quarter net sales by an estimated $40 million. These industrywide headwinds are supply-driven and we expect them to abate in the second half of the year as additional production capacity comes online. Until then, we will keep actively managing our inventory and using our recommendation engines to help customers find attractive alternatives.”
CHWY stock is seeing heavy trading today on the news. As of this writing, more than 4.5 million shares of the stock have changed hands. That’s above its daily average trading volume of 3.8 million shares.
CHWY stock was down 4.7% as of Friday morning and is down 15% since the start of the year.
There’s still other stock market news today that investors need to be aware of.
Luckily for them, InvestorPlace offers extensive coverage of the market daily. That includes the latest news that has Senseonics Holdings (NYSEMKT:SENS) and Biogen (NASDAQ:BIIB) shares on the move, as well as the winners and losers in pre-market trading today. You can find all that info at the links below!
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On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.