To The Moon

$Chewy, Inc.(CHWY)$ s stock rose 5.92% in premarket trading and closed -1.07% after a mixed earnings announcement.

Here are the key highlights:

Revenue

• Net Sales: $3.25 billion, up 14.9% year over year. This exceeded the Zacks Consensus Estimate of $3.196 billion.

• Autoship Program: Sales from the Autoship program increased by 21.2% year over year, accounting for 80.6% of Q4 net sales.

Profitability

• Adjusted EBITDA: $124.5 million, up 44% year over year. The adjusted EBITDA margin expanded by 70 basis points to 3.8%.

• Gross Margin: 28.5%, up 30 basis points year over year. This was driven by improvements in product mix and sponsored ads.

• Net Income: $22.8 million, down nearly 29% year over year. This decline was due to higher projected costs.

Customer Metrics

• Active Customers: 20.5 million, up 2.1% year over year. This marks a return to year-over-year active customer growth after a decline in the previous quarter.

• Net Sales Per Active Customer (NSPAC): $578, up 4.1% year over year.

Future Outlook

• 2025 Guidance: For Q1 2025, Chewy expects net sales between $3.06 billion and $3.09 billion, with adjusted earnings per share between 30 cents and 35 cents. For the full fiscal 2025, the company anticipates net sales between $12.30 billion and $12.45 billion, with an adjusted EBITDA margin of 5.4-5.7%.

The Target Price for $Chewy, Inc.(CHWY)$

Average Price Target: According to Zacks Investment Research, the average price target for Chewy is $38.88, based on short-term price targets from 24 analysts. This represents an upside of about 13.29% from the last closing price.

• Highest and Lowest Targets: The highest price target is $47.00, while the lowest is $27.00.

• Recent Adjustments: Mizuho Securities recently raised its price target for Chewy from $42.00 to $43.00, maintaining an Outperform rating. TD Cowen also raised its price target to $45.00, reiterating a Buy rating. Jefferies maintained a Buy rating with a steady price target of $40.00.

Overall, Chewy's strong Q4 performance, which exceeded expectations, has led to increased confidence among analysts regarding its future growth and profitability.