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Online marketplace Etsy (NASDAQ:ETSY) will be reporting earnings tomorrow after market hours. Here’s what to look for.
Etsy beat analysts’ revenue expectations by 3% last quarter, reporting revenues of $647.8 million, up 3% year on year. It was a satisfactory quarter for the company, with an impressive beat of analysts’ EBITDA estimates but slow revenue growth. It reported 96.61 million active buyers, flat 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 grow 2.5% year on year to $652.4 million, slowing from the 7% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.06 per share.
The majority of analysts covering the company have 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 2.9% on average.
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. Netflix delivered year-on-year revenue growth of 15%, meeting analysts’ expectations, and Coursera reported revenues up 6.4%, topping estimates by 1.2%. Netflix traded up 11.1% following the results while Coursera was down 9.7%.
Read our full analysis of Netflix’s results here and Coursera’s results here.
Investors in the consumer internet segment have had steady hands going into earnings, with share prices up 1.9% on average over the last month. Etsy is down 12.1% during the same time and is heading into earnings with an average analyst price target of $64.19 (compared to the current share price of $48.80).
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