Online home goods retailer Wayfair (NYSE: 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? Find out by reading the original article on StockStory.
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 (NASDAQ:OSTK)'s revenues decreased 18.9% year on year, missing analyst estimates by 5.76% and Meta (NASDAQ: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 the full analysis of Overstock's and Meta's results on StockStory.
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.
The author has no position in any of the stocks mentioned.