Online home goods retailer Wayfair (NYSE: W) will be reporting earnings this Wednesday before market hours. Here’s what to look for.
Wayfair beat analysts’ revenue expectations last quarter, reporting revenues of $3.52 billion, up 7.5% year on year. It was a strong quarter for the company, with a solid beat of analysts’ EBITDA estimates. It reported 21.7 million active buyers, up 3.3% year on year.
Is Wayfair a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting Wayfair’s revenue to grow 8.3% year on year, in line with the 8.1% increase it recorded in the same quarter last year.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. Wayfair has a history of exceeding Wall Street’s expectations.
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 42.4%, beating analysts’ expectations by 4.9%, and Amazon reported revenues up 12.1%, in line with consensus estimates. Carvana traded up 15.5% following the results while Amazon was down 1.8%.
Read our full analysis of Carvana’s results here and Amazon’s results here.
There has been positive sentiment among investors in the consumer internet segment, with share prices up 4.7% on average over the last month. Wayfair is up 7% during the same time and is heading into earnings with an average analyst price target of $125.41 (compared to the current share price of $113.43).
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