Chewy (NYSE:CHWY) stock isn’t doing so hot on Thursday following the release of its earnings report for the second quarter of 2021.
Investors are reacting negatively to the Chewy earnings report today as the company failed to meet Wall Street’s estimates. That includes diluted losses per share of 4 cents, which missed analysts’ estimates of -2 cents. However, that loss per share was half of what it was in the previous year.
Unfortunately, the company’s revenue of $2.16 billion also wasn’t enough to satisfy holders of CHWY stock today. This is also below analysts’ estimates of $2.2 billion. Even if it is a 26.8% year-over-year increase.
Chewy CEO Sumit Singh and CFO Mario Marte said the following in a letter to shareholders.
“Out-of-stock levels remained elevated in the second quarter, but they improved modestly versus the first quarter, resulting in a smaller drag on net sales in the second quarter. This is the result of supply chain conditions improving in some areas as certain vendors reduce backlogs. However, other areas like wet dog food are still being affected by industry-wide production capacity limitations.”
CHWY stock is seeing the effects of today’s earnings report with heavy trading of the shares. As of this writing, more than 8 million shares of the stock have changed hands. To put this in perspective, the company’s daily average trading volume is closer to 3.1 million shares.
CHWY stock was down 7.7% as of Thursday afternoon and is down 9.2% since the start of the year.
Traders looking for more stock market news for Thursday will want to keep reading!
InvestorPlace has all the latest stock market news that traders need to know about today. That includes why shares of Chargepoint (NYSE:CHPT) stock are on the rise, today’s pre-market stock movers, as well as a breakdown for Lucid Motors (NASDAQ:LCID). You can learn all about these topics by following the links below!
More Thursday Stock Market News
- CHPT Stock News: 11 Reasons Why Chargepoint Investors Are Smiling Today
- Today’s Biggest Pre-Market Stock Movers: 10 Top Gainers and Losers on Thursday
- Should You Buy or Sell Lucid Motors (LCID) Stock as Insider Selling Starts?
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.