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Revolve Reports Q4: Everything You Need To Know Ahead Of Earnings


Jabin Bastian /
2022/02/22 6:27 am EST
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Online fashion retailer Revolve Group (NASDAQ: RVLV) will be announcing earnings results tomorrow after the bell. Here's what to expect.

Last quarter Revolve reported revenues of $244 million, up 61.5% year on year, beating analyst revenue expectations by 13.8%. It was a very strong quarter for the company, with an impressive beat of analyst estimates and an exceptional revenue growth. The company reported 1.67 million active buyers, up 11.5% year on year.

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

This quarter analysts are expecting Revolve's revenue to grow 57% year on year to $221 million, improving on the 4.6% year-over-year decline in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.18 per share.

Revolve 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 twice over the last two years.

Looking at Revolve'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%. Angi traded down 9.9% on results. Read our full analysis of Angi's results here.

Triggered by the Federal Reserve's hawkish stance on interest rates, shares of technology companies have been facing sell-off in 2022 and while some of the consumer internet stocks have fared somewhat better, they have not been spared, with share price declining 9.36% over the last month. Revolve is up 11.1% during the same time, and is heading into the earnings with analyst price target of $80.2, compared to share price of $50.01.

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.