Chewy Stock Surges 25.37% on First Quarter 2024 Financial Result

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Chewy stock (CHWY) surged 25.37% on the first quarter 2024 financial result, following a strong Q1 2024 earnings report that beat Wall Street estimates and an increase in Autoship sales. The company reported adjusted earnings of 31 cents a share on revenue of $2.88 billion for the quarter ended April 28, beating analysts' expectations of 20 cents a share on revenue of $2.85 billion. In the same period last year, the company posted earnings of 20 cents a share on revenue of $2.79 billion.

Chewy (CHWY), a pet supplies website, is known for its Autoship offering, which allows users to have items scheduled to automatically be delivered at their home for a discount. During the quarter, Chewy reported a 6.4% increase in Autoship customer sales from a year ago to $2.23 billion.

The pandemic-driven surge in pet adoptions during the height of Covid-19 saw a jump in demand, but adoptions have slowed and rising prices have seen Chewy (CHWY) take a hit. The company's financial results for the first quarter of fiscal year 2024 ended April 28, 2024, showed strong net sales and record-breaking Adjusted EBITDA.

Technical Outlook
Chewy stock (CHWY) stock is up 26% as of the time of writing prior to the earnings beat. The stock's Relative Strength Index (RSI) of 74.51 signifies the stock is currently overbought.