Online home goods retailer Wayfair (NYSE: W) will be announcing earnings results tomorrow morning. Here’s what to expect.
Wayfair missed analysts’ revenue expectations by 2% last quarter, reporting revenues of $3.12 billion, down 1.7% year on year. It was a disappointing quarter for the company, with a miss of analysts’ buyer estimates and slow revenue growth. It reported 22 million active buyers, flat year on year.
Is Wayfair a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Wayfair’s revenue to decline 2.3% year on year to $2.88 billion, a reversal from the 3.7% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.13 per share.
The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Wayfair has missed Wall Street’s revenue estimates twice over the last two years.
Looking at Wayfair’s peers in the consumer internet segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Carvana delivered year-on-year revenue growth of 31.8%, beating analysts’ expectations by 5.3%, and Coinbase reported revenues up 78.8%, falling short of estimates by 3.7%.
Read our full analysis of Carvana’s results here and Coinbase’s results here.
There has been positive sentiment among investors in the consumer internet segment, with share prices up 7% on average over the last month. Wayfair is down 19.6% during the same time and is heading into earnings with an average analyst price target of $63.46 (compared to the current share price of $42.67).
Unless you’ve been living under a rock, it should be obvious by now that generative AI is going to have a huge impact on how large corporations do business. While Nvidia and AMD are trading close to all-time highs, we prefer a lesser-known (but still profitable) semiconductor stock benefitting from the rise of AI. Click here to access our free report on our favorite semiconductor growth story.
