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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