Etsy (ETSY) To Report Earnings Tomorrow: Here Is What To Expect

StockStory
18 Feb
Etsy (ETSY) To Report Earnings Tomorrow: Here Is What To Expect

Online marketplace Etsy (NASDAQ:ETSY) will be reporting results tomorrow before market hours. Here’s what investors should know.

Etsy beat analysts’ revenue expectations by 1.5% last quarter, reporting revenues of $662.4 million, up 4.1% year on year. It was a mixed quarter for the company, with a solid beat of analysts’ EBITDA estimates but number of active buyers in line with analysts’ estimates. It reported 96.71 million active buyers, flat year on year.

Is Etsy a buy or sell going into earnings? Read our full analysis here, it’s free.

This quarter, analysts are expecting Etsy’s revenue to grow 2.4% year on year to $862.9 million, slowing from the 4.3% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.46 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. Etsy has a history of exceeding Wall Street’s expectations, beating revenue estimates every single time over the past two years by 2.4% on average.

Looking at Etsy’s peers in the consumer internet segment, some have already reported their Q4 results, giving us a hint as to what we can expect. Coinbase delivered year-on-year revenue growth of 138%, beating analysts’ expectations by 22%, and Robinhood reported revenues up 115%, topping estimates by 7.7%. Coinbase traded down 8% following the results while Robinhood was up 14%.

Read our full analysis of Coinbase’s results here and Robinhood’s results here.

There has been positive sentiment among investors in the consumer internet segment, with share prices up 9.5% on average over the last month. Etsy is up 11.2% during the same time and is heading into earnings with an average analyst price target of $62.79 (compared to the current share price of $58.39).

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Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

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