Chewy’s fourth quarter on the surface looks like a beat but one time credits and interest income drove the earning beat. Low quality of earnings. Meanwhile stock options are almost twice that of net income in the quarter which included the credits noted above. For the full year stock options are almost a quarter of a billion dollars. Finally next quarters guidance is below consensus estimates. I will review my model this weekend but clearly my outlook will be lower based on first look.
I can’t believe that BC Partners accepts such performance and I wonder what their limited partners think?
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