Online home goods retailer Wayfair (NYSE:W) will be announcing earnings results tomorrow before market open. Here’s what to look for.
Wayfair met analysts’ revenue expectations last quarter, reporting revenues of $2.88 billion, down 2% year on year. It was a slower quarter for the company, with a significant miss of analysts’ number of active customers estimates. It reported 21.7 million active buyers, down 2.7% 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 1.7% year on year to $3.06 billion, a deceleration from its flat revenue in the same quarter last year. Adjusted loss is expected to come in at $0 per share.
Analysts covering the company have generally 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 Q4 results, giving us a hint as to what we can expect. Amazon delivered year-on-year revenue growth of 10.5%, meeting analysts’ expectations, and Coinbase reported revenues up 138%, topping estimates by 22%. Amazon traded down 4% following the results while Coinbase was also down 8%.
Read our full analysis of Amazon’s results here and Coinbase’s results here.
There has been positive sentiment among investors in the consumer internet segment, with share prices up 7.5% on average over the last month. Wayfair’s stock price was unchanged during the same time and is heading into earnings with an average analyst price target of $56.04 (compared to the current share price of $48.80).
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