Online home goods retailer Wayfair (NYSE: W) will be reporting earnings this Tuesday before market hours. Here’s what investors should know.
Wayfair beat analysts’ revenue expectations last quarter, reporting revenues of $2.93 billion, up 7.4% year on year. It was a strong quarter for the company, with a solid beat of analysts’ EBITDA estimates. It reported 21.4 million active buyers, up 1.4% year on year.
Is Wayfair 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 Wayfair’s revenue to grow 6% year on year, improving from the 5% 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. Wayfair rarely misses Wall Street’s revenue estimates.
Looking at Wayfair’s peers in the consumer internet segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Amazon delivered year-on-year revenue growth of 19.6%, beating analysts’ expectations by 2%, and Carvana reported revenues up 52.4%, topping estimates by 7.7%. Amazon traded up 15.4% following the results while Carvana was down 7.7%.
Read our full analysis of Amazon’s results here and Carvana’s results here.
Over the last year or so, investors' attention has moved from one major market theme to the next, spanning AI disruption and surging infrastructure investment to geopolitical tensions, interest rates, and the health of the broader economy. While some of the consumer internet stocks have shown solid performance in this choppy environment, the group has generally underperformed, with share prices down 4.2% on average over the last month. Wayfair is down 9.4% during the same time and is heading into earnings with an average analyst price target of $95.70 (compared to the current share price of $84.45).
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