Chewy, Inc. (CHWY), the online retailer specializing in pet food and related products, saw its shares surge by over 14% in pre-market trading on Wednesday, reaching $19.28, following the release of optimistic first-quarter results that exceeded analysts' expectations. Additionally, the company revealed a share buyback plan amounting to $500 million.
For the first quarter, Chewy's net income soared to $66.9 million, or $0.15 per share, from $22.86 million, or $0.05 per share, for the same period last year. This increase was primarily driven by a rise in sales.
Excluding certain items, the company's earnings stood at $137.06 million, or $0.31 per share, surpassing the average analyst estimate of $0.06 per share, as per Thomson-Reuters.
Quarterly sales rose to $2.878 billion from $2.790 billion in the prior year, slightly above the consensus estimate of $2.85 billion.
Chewy also disclosed that its Board of Directors has authorized a share repurchase program for up to $500 million of its Class A and/or Class B common stock.
On Tuesday, Chewy's shares closed at $16.91, marking a 2.05% increase. Over the past year, the stock has fluctuated between $14.69 and $40.78.
