Farfetch (FTCH) Reports Q4: Everything You Need To Know Ahead Of Earnings

Radek Strnad /
2022/02/23 6:42 am EST

Online luxury marketplace Farfetch (NYSE: FTCH) will be announcing earnings results tomorrow after the bell. Here's what you need to know.

Last quarter Farfetch reported revenues of $582.5 million, up 33% year on year, missing analyst expectations by 1.48%. It was a mixed quarter for the company, with growing number of users but a miss of the top line analyst estimates. The company reported 3.59 million active buyers, up 31% 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 24.4% year on year to $672.2 million, slowing down from the 41.3% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted loss is expected to come in at -$0.08 per share.

Farfetch Total Revenue

The company only missed Wall St's revenue estimates once over the last two years, and has on average exceeded top line expectations by 7.86%.

Looking at Farfetch's peers in the consumer internet segment, some of them have already reported Q4 earnings results, giving us a hint what we can expect. Angi (NASDAQ:ANGI) delivered top-line growth of 15.7% year on year, beating analyst estimates by 0.12% and it traded down 9.9% on results. Read our full analysis of Angi's results here.

Tech stocks have been facing declining investor sentiment in 2022 and while some of the consumer internet stocks have fared somewhat better, they have not been spared, with share price declining 4.11% over the last month. Farfetch is down 20.1% during the same time, and is heading into the earnings with analyst price target of $55.8, compared to share price of $16.45.

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.