What happened
Shares of Chewy (CHWY -0.12%), the e-commerce pet company, jumped today after it reported better-than-expected third-quarter results.
The company's top- and bottom-line results beat expectations, and Chewy's management raised its revenue guidance for the full year, sending the stock up 6.5% as of 11:20 a.m. ET.
So what
Chewy reported revenue of $2.53 billion in the quarter, which was up 14.5% from the year-ago quarter and outpaced Wall Street's consensus average of $2.46 billion.
The company's bottom line was also impressive, as Chewy's non-GAAP earnings of $0.01 was a huge improvement from its loss of $0.08 in the year-ago quarter and far ahead of analysts' consensus estimate of a loss of $0.09.
Additionally, Chewy's gross margin increased by 200 basis points to 28.4%, and the company's net sales per active customer rose by 13.8% to $477.
"The fact that we are simultaneously driving top-line growth and expanding margins is yet another proof point of our ability to get big fast and get fit fast, regardless of the macro environment," Chewy CEO Sumit Singh said in a press release.
Now what
In addition to the company's strong third-quarter results, investors were also pleased to see that Chewy's management raised its full-year revenue guidance to a range of between $10.02 billion to $10.04 billion -- up from the previous range of between $9.9 billion to $10 billion.
With the company beating Wall Street's expectations in the quarter and management raising its revenue outlook for the year, investors had good reason to be optimistic about Chewy's stock today.
