Online marketplace Etsy (NYSE: ETSY) will be announcing earnings results this Wednesday before market open. Here’s what to look for.
Etsy met analysts’ revenue expectations last quarter, reporting revenues of $881.6 million, up 3.5% year on year. It was a mixed quarter for the company, with a solid beat of analysts’ EBITDA estimates but a decline in its buyers. It reported 93.54 million active buyers, down 2% year on year.
Is Etsy 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 Etsy’s revenue to decline 5.3% year on year, a deceleration from its flat revenue in the same quarter last year.
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. Etsy has missed Wall Street’s revenue estimates multiple times over the last two years.
Looking at Etsy’s peers in the consumer internet segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Coursera delivered year-on-year revenue growth of 9.1%, meeting analysts’ expectations, and Netflix reported revenues up 16.2%, topping estimates by 0.5%. Coursera traded down 11.6% following the results while Netflix was also down 9.7%.
Read our full analysis of Coursera’s results here and Netflix’s results here.
There has been positive sentiment among investors in the consumer internet segment, with share prices up 17.9% on average over the last month. Etsy is up 37.5% during the same time and is heading into earnings with an average analyst price target of $62.69 (compared to the current share price of $65.30).
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