Wayfair (W) Reports Q4: Everything You Need To Know Ahead Of Earnings

Kayode Omotosho /
2023/02/22 4:22 am EST

Online home goods retailer Wayfair (NYSE: W) will be reporting results tomorrow before market open. Here's what investors should know.

Last quarter Wayfair reported revenues of $2.84 billion, down 9.01% year on year, beating analyst revenue expectations by 1.08%. It was a weak quarter for the company, with declining number of users and revenue growth. The company reported 22.6 million active buyers, down 22.6% 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 decline 5.7% year on year to $3.07 billion, improvement on the 11.4% year-over-year decrease in revenue the company had recorded in the same quarter last year. Adjusted loss is expected to come in at -$1.66 per share.

Wayfair Total Revenue

The analysts covering the company have been growing increasingly bullish about the business heading into the earnings, with revenue estimates seeing eight upwards revisions over the last thirty days. The company missed Wall St's revenue estimates four times over the last two years.

Looking at Wayfair's peers in the consumer internet segment, some of them have already reported Q4 earnings results, giving us a hint of what we can expect. Roku delivered top-line growth of 0.2% year on year, beating analyst estimates by 8% and Airbnb reported revenues up 24.1% year on year, exceeding estimates by 2.22%. Roku traded up 10.8% on the results, Airbnb was up 9.24%. Read our full analysis of Roku's results here and Airbnb's results here.

Investors in the consumer internet segment have had steady hands going into the earnings, with the stocks down on average 0.93% over the last month. Wayfair is down 12.1% during the same time, and is heading into the earnings with analyst price target of $57.1, compared to share price of $48.02.

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