Why Chewy Stock Is Sinking This Week

Shares of leading online pet goods retailer Chewy (NYSE: CHWY) are down 15% this week as of 1 p.m. ET on Thursday, according to data provided by S&P Global Market Intelligence. Chewy reported second-quarter earnings on Wednesday, delivering a 9% increase in sales and a 38% rise in adjusted earnings per share (EPS).However, management guided for a slower 7.5% sales growth and just $0.30 in adjusted EPS (down from $0.33 in Q2) in its upcoming quarter, prompting this week's sell-off.Drops like these are peculiar. Yes, guidance was a bit conservative, but there's a solid chance that Chewy ends up beating its estimates anyway in the upcoming quarter.Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool