Online home goods retailer Wayfair (NYSE: W) will be reporting results tomorrow before market open. Here's what to expect.
Last quarter Wayfair reported revenues of $3.17 billion, down 3.44% year on year, beating analyst revenue expectations by 2.38%. It was a decent quarter for the company, with revenue exceeding expectations, driven by a nice beat on orders and a slight beat on active customers. It was even better to see Wayfair smash adjusted EBITDA and free cash flow expectations, showing that its focus on profitability is paying off. On the other hand, despite beating estimates, the decline in its user base was not a great sign. The company reported 21.8 million active buyers, down 7.63% year on year.
Is Wayfair buy or sell heading into the earnings? Read our full analysis here, it's free.
This quarter analysts are expecting Wayfair's revenue to grow 5.06% year on year to $2.98 billion, improving on the 9% year-over-year decline in revenue the company had recorded in the same quarter last year. Adjusted loss is expected to come in at -$0.46 per share.
The analysts covering the company have been growing increasingly bullish about the business heading into the earnings, with revenue estimates seeing four upwards revisions over the last thirty days. The company missed Wall St's revenue estimates twice over the last two years.
Looking at Wayfair's peers in the consumer internet segment, some of them have already reported Q3 earnings results, giving us a hint of what we can expect. Overstock's revenues decreased 18.9% year on year, missing analyst estimates by 5.76% and Meta reported revenues up 23.2% year on year, exceeding estimates by 2.03%. Overstock traded down 1.9% on the results, Meta was up 4.8%.
Read our full analysis of Overstock's results here and Meta'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 7.53% over the last month. Wayfair is down 33% during the same time, and is heading into the earnings with analyst price target of $83, compared to share price of $41.85.
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.
Join Paid Stock Investor Research
Help us make StockStory more helpful to investors like yourself. Join our paid user research session and receive a $50 Amazon gift card for your opinions. Sign up here.
The author has no position in any of the stocks mentioned.