Online marketplace Etsy (NASDAQ: ETSY) will be reporting results tomorrow after market close. Here's what investors should know.
Last quarter Etsy reported revenues of $807.2 million, up 12.6% year on year, beating analyst revenue expectations by 7.33%. It was a decent quarter for the company, with a solid beat of analyst estimates but slow revenue growth. The company reported 95.1 million active buyers, up 5.52% year on year.
Is Etsy buy or sell heading into the earnings? Read our full analysis here, it's free.
This quarter analysts are expecting Etsy's revenue to grow 7.19% year on year to $620.9 million, improving on the 5.2% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.90 per share.
The analysts covering the company have been growing increasingly bearish about the business heading into the earnings, with revenue estimates seeing four downward revisions over the last thirty days. The company has a history of exceeding Wall St's expectations, beating revenue estimates every single time over the past two years on average by 3.76%.
Looking at Etsy's peers in the consumer internet segment, some of them have already reported Q1 earnings results, giving us a hint what we can expect. Shutterstock delivered top-line growth of 8.11% year on year, beating analyst estimates by 1.77% and Teladoc reported revenues up 11.3% year on year, exceeding estimates by 1.78%. Shutterstock traded flat on the results, Teladoc was up 4.97%. Read our full analysis of Shutterstock's results here and Teladoc's results here.
The fears around raising interest rates have been putting pressure on tech stocks and while some of the consumer internet stocks have fared somewhat better, they have not been spared, with share price declining 4.83% over the last month. Etsy is down 12% during the same time, and is heading into the earnings with analyst price target of $131.2, compared to share price of $95.3.
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The author has no position in any of the stocks mentioned.