Online marketplace Etsy (NYSE: ETSY) will be reporting results this Wednesday before market hours. Here’s what you need to know.
Etsy beat analysts’ revenue expectations last quarter, reporting revenues of $668.3 million, up 6.2% year on year. It was an exceptional quarter for the company, with an impressive beat of analysts’ EBITDA estimates.
Is Etsy a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting Etsy’s revenue to grow 6.9% year on year, a reversal from the 5.8% decrease it recorded in the same quarter last year.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. Etsy has missed Wall Street’s revenue estimates multiple times over the last two years.
Looking at Etsy’s peers in the consumer internet segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Meta delivered year-on-year revenue growth of 26.1%, beating analysts’ expectations by 2%, and Netflix reported revenues up 11.8%, in line with consensus estimates. Meta traded down 7% following the results while Netflix was also down 5.3%.
Read our full analysis of Meta’s results here and Netflix’s results here.
There has been positive sentiment among investors in the consumer internet segment, with share prices up 6.1% on average over the last month. Etsy is up 23.9% during the same time and is heading into earnings with an average analyst price target of $88.65 (compared to the current share price of $85.42).
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