Chewy, Inc. (CHWY) will report fiscal third quarter 2022 financial results after the market close on Thursday, December 8, 2022. Wall Street believes the online pet supplies retailer will lose $0.09 per share (EPS) with sales hitting $2.46 billion.
Analysts tend to be way off the target as actual results deviate substantially from consensus EPS projections for the last four quarters, falling short by 100%, 87.50% and outperforming by 128% and 145% in the last two quarters.
Strike out or home run results can lead to a stock swinging wildly after quarterly earnings checkups. Let’s examine CHWY’s stock chart for the bullish and bearish scenarios post-EPS.
Chewy predominantly traded between $40 and $44 since November 14th. Support and resistance lines are clearly drawn at the bottom and top of the range bound box. Solid earning and enthusiastic forward guidance could push CHWY shares beyond resistance, potentially to $52.50 on the upside. Poor earnings and the main point of support could come right below the 50-day moving average of $36.90. That’s where the trendline connecting bottoms is found.
Bullish traders might consider call options and bearish speculators put options to limit downside to the amount invested. Of course, trading earnings and options is only appropriate for investors with maximum risk tolerance.