Chewy reported better-than-expected Q1 results
The shares of Chewy Inc (NYSE:CHWY) are 14.3% higher premarket, after the online pet supply retailer unveiled a better-than-expected quarterly report. The company’s first-quarter results featured adjusted earnings of 15 cents per share on revenue of $2.88 billion, both of which topped Wall Street’s estimates. In addition, Chewy announced a share buyback plan of up to $500 million.
Should these premarket gains hold, CHWY will open at its highest level since January and could be the equity’s best single-session percentage gain since December. The stock is entering today’s session with a 28.4% year-to-date deficit, with its 100-day moving average keeping a lid on recent rallies.
A short squeeze could catch bearish bettors off guard. Short interest fell 3% in the most recent reporting period, yet the 22.69 million shares sold short account for 17.4% of CHWY’s total available float.
It’s also worth noting the stock’s Schaeffer’s Volatility Scorecard (SVS) stands at an 70 out of 100. This means CWHY exceeded option traders’ volatility expectations during the last 12 months.