Chewy (CHWY) shares were lower Wednesday after the online pet-care company reported a wider-than-expected fiscal-second-quarter loss.
The shares of the Dania Beach, Fla., company were trading down 6.8% at $28.19. A number of analysts Wednesday were less than warm and fuzzy in their responses as well.
Chewy's loss for the period ended Aug. 4, widened to 21 cents a share from 16 cents in the year-earlier period. Sales were $1.15 billion, up 43% from $805.6 million a year earlier. Analysts were expecting a loss of 11 cents on revenue of $1.13 billion, according to FactSet.
Fiscal-third-quarter sales should come in between $1.19 billion and $1.21 billion, a year-over-year increase of 36% to 38%, Chewy said. Analysts expect sales of $1.16 billion.
Mark Mahaney at RBC Capital Markets affirmed his sector-perform rating and $37 price target.
Chewy's revenue and loss before interest, taxes, depreciation and amortization beat RBC's estimate and the Wall Street consensus, Mahaney wrote.
Short-term, Mahaney said he would like to see a "material" drop in the share price and movement in new initiatives at the company, in particular healthcare and private-label efforts.
He also awaits the Dec. 11 expiration of the initial public offering share lockup. The PetSmart subsidiary went public and started trading in June.
Longer-term, RBC believes "Chewy addresses a large and attractive market opportunity with a compelling value proposition for pet owners."
At Instinet, Seeking Alpha reported, analyst Mark Kelley affirmed Chewy neutral and cut its price target to $32 from $36 "to factor in valuation and the guidance update."
At Wedbush, Chewy was affirmed neutral with a $30 target, 24/7 Wall Street reported. Even as the company exceeded estimates, Wedbush noted that its revenue-growth rate was slowing.