Farfetch (FTCH) Reports Earnings Tomorrow. What To Expect

Adam Hejl /
2023/05/17 4:54 am EDT

Online luxury marketplace Farfetch (NYSE: FTCH) will be announcing earnings results tomorrow after market hours. Here's what to look for.

Last quarter Farfetch reported revenues of $629.2 million, down 5.48% year on year, in line with analyst expectations. It was a slower quarter for the company, with declining revenue. The company reported 3.92 million active buyers, up 6.27% year on year.

Is Farfetch buy or sell heading into the earnings? Read our full analysis here, it's free.

This quarter analysts are expecting Farfetch's revenue to grow 0.18% year on year to $515.7 million, slowing down from the 6.13% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted loss is expected to come in at -$0.29 per share.

Farfetch Total Revenue

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 missed Wall St's revenue estimates four times over the last two years.

Looking at Farfetch'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 5.91% over the last month. Farfetch is down 12.4% during the same time, and is heading into the earnings with analyst price target of $9.3, compared to share price of $4.02.

One way to find opportunities in the market is to watch for generational shifts in the economy. Almost every company is slowly finding itself becoming a technology company and facing cybersecurity risks and as a result, the demand for cloud-native cybersecurity is skyrocketing. This company is leading a massive technological shift in the industry and with revenue growth of 70% year on year and best-in-class SaaS metrics it should definitely be on your radar.

The author has no position in any of the stocks mentioned.