Chewy Inc’s stock performance remains under pressure as the online pet supplies retailer navigates mixed signals from its recent corporate developments. While the company has announced a strategic acquisition and raised its current quarter profit outlook, investors appear concerned about the lack of clear annual guidance.
Acquisition Expands Equine Health Presence
The company is bolstering its market position through the purchase of SmartEquine, a provider of equine health products. This all-cash transaction specifically targets subscription-based supplement programs, which represent a highly profitable business segment. Management anticipates the deal will enhance adjusted EBITDA margins as early as the fourth quarter of 2025.
Quarterly Outlook Brightens Amid Annual Uncertainty
Chewy’s updated quarterly projections have surpassed market expectations. The company has elevated its third-quarter 2025 earnings per share forecast to a range of $0.280 to $0.330, significantly above the consensus estimate of $0.230. Revenue for the quarter is projected at approximately $3.1 billion.
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However, the positive quarterly revision contrasts with ambiguous full-year guidance. The revenue outlook for fiscal 2025 remains within expectations at $12.5 to $12.6 billion, but more critically, the company has provided no specific EPS projection for the full year.
- Q3 2025 Revenue: ~$3.1 billion
- Q3 2025 EPS: $0.280-$0.330 (exceeding expectations)
- FY 2025 Revenue: $12.5-$12.6 billion (meeting expectations)
- Strategic Focus: SmartEquine acquisition targets margin expansion
Market Sentiment Weighs Conflicting Signals
Despite the current uncertainties, market analysts generally maintain their favorable stance on the company. The consensus rating among 27 research firms stands at “Moderate Buy,” with an average price target of $45.84. Institutional investors, including Spire Wealth Management, have recently increased their holdings.
The question remains whether this institutional confidence can overcome growing investor doubts. The company’s most recent quarterly report revealed revenue of $3.10 billion but fell short of earnings expectations. With second-quarter 2025 results showing just $0.14 per share, profitability concerns persist. The absence of clear annual guidance continues to cast a shadow over the stock’s near-term prospects.
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