Online marketplace Etsy (NASDAQ:ETSY) will be announcing earnings results this Wednesday before the bell. Here’s what investors should know.
Etsy beat analysts’ revenue expectations by 1.4% last quarter, reporting revenues of $651.2 million, flat year on year. It was a satisfactory quarter for the company, with a solid beat of analysts’ EBITDA estimates but a decline in its buyers. It reported 94.78 million active buyers, down 1.7% year on year.
Is Etsy a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Etsy’s revenue to be flat year on year at $645.1 million, slowing from the 3% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.09 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Etsy has only missed Wall Street’s revenue estimates once over the last two years, exceeding top-line expectations by 1.1% on average.
Looking at Etsy’s peers in the consumer internet segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Alphabet delivered year-on-year revenue growth of 13.8%, beating analysts’ expectations by 2.6%, and Coursera reported revenues up 9.8%, topping estimates by 3.7%. Alphabet’s stock price was unchanged after the resultswhile Coursera was up 36.2%.
Read our full analysis of Alphabet’s results here and Coursera’s results here.
There has been positive sentiment among investors in the consumer internet segment, with share prices up 4.7% on average over the last month. Etsy is up 25.1% during the same time and is heading into earnings with an average analyst price target of $53.46 (compared to the current share price of $62.76).
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