Online marketplace Etsy (NASDAQ: ETSY) will be reporting earnings tomorrow after market hours. Here's what investors should know.
Last quarter Etsy reported revenues of $585.1 million, up 10.6% year on year, beating analyst revenue expectations by 5.06%. It was a weaker quarter for the company, with an underwhelming revenue guidance for the next quarter and a slow revenue growth. The company reported 93.9 million active buyers, up 3.82% 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 5.92% year on year to $563.9 million, slowing down from the 17.9% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.77 per share.
Majority of analysts covering the company have reconfirmed their estimates over the last thirty days, suggesting they are expecting the business to stay the course heading into the earnings. 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 5.79%.
Looking at Etsy's peers in the consumer internet segment, some of them have already reported Q3 earnings results, giving us a hint what we can expect. Snap delivered top-line growth of 5.71% year on year, missing analyst estimates by 0.91% and Pinterest reported revenues up 8.15% year on year, exceeding estimates by 2.68%. Snap traded down 28.2% on the results, Pinterest was up 13.7%. Read our full analysis of Snap's results here and Pinterest's results here.
Investors in the consumer internet segment have had steady hands going into the earnings, with the stocks up on average 1.43% over the last month. Etsy is down 10.4% during the same time, and is heading into the earnings with with analyst price target of $120.8, compared to share price of $94.05.
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The author has no position in any of the stocks mentioned.