Chewy Shares Rise In Pre-market On Better-than-expected Q1 Results, Share Buyback

(RTTNews) - Shares of Chewy, Inc. (CHWY), an online retailer of pet food and other pet-related products, were rising more than 14 percent in pre-market on Wednesday to $19.28, after reporting upbeat first-quarter results above analysts' view. The company also announced a share buyback of up to $500 million.

Net income for the first quarter significantly increased to $66.9 million or $0.15 per share from $22.86 million or $0.05 per share in the same quarter a year ago, mainly helped by growth in sales.

Excluding items, earnings were $137.06 million or $0.31 per share, that beat the average estimate of analysts polled by Thomson-Reuters of $0.06 per share.

Sales for the quarter grew to $2.878 billion from $2.790 billion in the prior-year quarter. The consensus estimate was for $2.85 billion.

Chewy also said its Board has authorized a share repurchase program of up to $500 million of its Class A and/or Class B common stock.

Chewy shares had closed at $16.91, up 2.05 percent, on Tuesday. The stock has been trading in the range of $14.69 - $40.78 in the last 1 year.