Chewy Q4 Preview: Pet Stock Hits 52-Week Low, Market Expert Says Earnings Are 'Prove It' Moment

Chewy Inc (NYSE:CHWY) is set to report fourth-quarter results Wednesday before the open, offering a fresh read on U.S. pet ownership trends and e-commerce growth. Chewy Q4 Earnings Estimates Analysts expect Chewy to report Q4 revenue of $3.26 billion, up from $3.25 billion in last year's fourth quarter, according to data from Benzinga Pro. The company has beaten analyst estimates for revenue in four straight quarters and in seven of the last 10 quarters overall. Analysts expect Chewy to report 20 cents in earnings per share for the fourth quarter. That’s down from 28 cents per share year-over-year. The company beat analyst estimates for earnings per share in four straight quarters and in nine of the last 10 quarters overall. The company expects Q4 revenue in the $3.24 billion to $3.26 billion range and earnings per share of 24 cents to 27 cents. What Experts Are Saying About Chewy Stock Here are other recent analyst ratings on Chewy stock and their price targets: Raymond James upgraded Chewy stock from Market Perform to Outperform with a $28 price target. Morgan Stanley maintains an Overweight rating, lowered price target from $51 to $50 TD Cowen maintains a Buy rating, lowered price target from $48 to $39 Barclays maintains an Overweight rating, lowered price target from $52 to $48 With Chewy stock hitting new 52-week lows, Freedom Capital Markets Chief Market Strategist Jay Woods says the company may be a "prove it story." "Their results have been good, but not good enough to justify prior optimism," Woods said in a weekly newsletter. The market expert said Chewy's guidance has been "a cautionary tail" over the prior quarters. "Chewy is not only a stock for the dogs, but a dog for those invested in it as well." Woods said Chewy management providing confidence could push shares higher, but one more cautious quarter for guidance could see shares drop even further. "The stock enters the week at crucial support. The $23 level has held once, but can it hold again. Any drop below and look for shares to quickly test $20." Woods said there is "more work to do" for momentum in the stock and for a rally. "Any rally to $27 should be faded for now." Raymond James analyst Rick Patel said the recent selloff in shares could create an attractive entry point for investors. Patel highlighted organic expansion, growth in digital adoption and a growing network of veterinary clinics for Chewy. "We consider Chewy in the development stages of scaling Chewy Vet Clinics. This initiative unlocks a $25B service segment of the $47B U.S. pet health market," Patel said. Patel said Chewy also benefits from its loyal base of Autoship customers, who make up around 83% of revenue. Key Items to Watch in Chewy's Q4 Results One of the areas to watch in Chewy's results and management commentary could be the company's hiring of Chris Deppe as Chief Financial Officer. Deppe has over 16 years of experience with Amazon.com Inc and is viewed as part of the company's continued efforts in enhancing its position in the ecommerce space. Autoship customer sales were up 13.6% for Chewy in the third quarter. This will be a key figure to watch as Autoship provides strong recurring revenue and proves customers loyalty to the brand. Autoship sales made up 83.9% of net sales in the third quarter. Gross margins were also up in the third quarter along with net sales per active customer up year-over-year. These are among the other key figures to watch Wednesday. The company previously raised guidance for fiscal 2025 and investors could be looking for strong guidance for the next fiscal year. Chewy Stock Price Action Chewy stock is down 1.8% to $23.17 on Tuesday versus a 52-week trading range of $22.74 to $48.62. The new 52-week low was set earlier during Tuesday's trading session. Chewy stock is down 30.8% year-to-date in 2026. Photo: Mijansk786 via Shutterstock