Wayfair (W) To Report Earnings Tomorrow: Here Is What To Expect

Adam Hejl 2022/11/02 3:39 am EDT

Online home goods retailer Wayfair (NYSE: W) will be reporting earnings tomorrow before the bell. Here's what to look for.

Last quarter Wayfair reported revenues of $3.28 billion, down 14.8% year on year, beating analyst revenue expectations by 3.01%. It was a weak quarter for the company, with declining number of users and slow revenue growth. The company reported 23.6 million active buyers, down 24.1% 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 9.97% year on year to $2.8 billion, improvement on the 18.7% year-over-year decrease in revenue the company had recorded in the same quarter last year. Adjusted loss is expected to come in at -$2.17 per share.

Wayfair Total Revenue

The analysts covering the company have been growing increasingly bearish about the business heading into the earnings, with revenue estimates seeing six downward 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 Q3 earnings results, giving us a hint of what we can expect. Overstock's revenues decreased 33.2% year on year, missing analyst estimates by 2.66% and Snap reported revenues up 5.71% year on year, missing analyst estimates by 0.91%. Overstock traded flat on the results, Snap was down 21.5%. Read our full analysis of Overstock's results here and Snap's results here.

There has been positive sentiment among investors in the consumer internet segment, with the stocks up on average 3.92% over the last month. Wayfair is up 15.5% during the same time, and is heading into the earnings with analyst price target of $63.10, compared to share price of $37.80.

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