Chewy surges 18% on beat-and-raise quarter; analysts bullish — Chewy (NYSE:CHWY) shares jumped 17.5% in early Thursday trading after the pet supply retailer beat on top and bottom lines.

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Chewy Inc reported first-quarter earnings per share of 5 cents, beating the estimate for a loss of 4 cents a share. Revenue was $2.78 billion, more than the estimated $2.73B.

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Sales were up 14.7% from the same time last year, the company said. In addition, gross margins are expanding, it said.

“Our first quarter results reflect accelerating double-digit topline growth and continued expansion of adjusted EBITDA margin. Net sales per active customer and Autoship customer sales also both reached new record highs for the company and continued to fuel customer loyalty and spend towards our platform,” said CEO Sumit Singh.

Gross margin of 28.4% expanded 90 basis points from the same time last year.

Analysts weighed in positively on Chewy’s report with Gordon Haskett upgrading the stock to Buy from Hold.

Needham & Company analysts reiterated a Buy rating and a $55 per share price target.

“[Chewy] is one of very few companies in consumer taking up the year’s guidance for sales/EBITDA as the category remains resilient,” they said.

Additional reporting by Senad Karaahmetovic

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