Online marketplace Etsy (NYSE: ETSY) will be announcing earnings results this Wednesday after market close. Here’s what to expect.
Etsy beat analysts’ revenue expectations last quarter, reporting revenues of $631.3 million, up 3.1% year on year. It was a strong quarter for the company, with a solid 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 decline 3.9% year on year, a reversal from the 3.8% increase 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 Q2 results, giving us a hint as to what we can expect. EverQuote delivered year-on-year revenue growth of 24.6%, beating analysts’ expectations by 2.6%, and Teladoc reported a revenue decline of 4%, falling short of estimates by 1.3%. Teladoc traded down 28.1% following the results.
Read our full analysis of EverQuote’s results here and Teladoc’s results here.
Investors in the consumer internet segment have had fairly steady hands going into earnings, with share prices down 1.2% on average over the last month. Etsy is up 10.9% during the same time and is heading into earnings with an average analyst price target of $77.38 (compared to the current share price of $83.22).
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