We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Wayfair (W) Surpasses Q3 Earnings and Revenue Estimates
Read MoreHide Full Article
Wayfair Inc. (W - Free Report) reported third-quarter 2020 non-GAAP earnings of $2.30 per share, which surpassed the Zacks Consensus Estimate of 81 cents.
Total revenues came in at $3.84 billion, up 66.5% year over year. Also, the figure surpassed the Zacks Consensus Estimate by 4.2%.
The increase in revenues was driven by strong acceleration in new and repeat customer orders. Also, increase in active customers and strength in the company's direct retail business aided year-over-year revenue growth.
Following strong third-quarter results, its share price increased 7.2%.
Direct retail net revenues — including sales generated primarily through Wayfair’s sites — were $3.8 billion, which increased 66.4% year over year.
Net revenues in the United States increased 66.5% year over year to $1.3 billion, while international net revenues grew 66.7% to $225.9 million.
Active customers increased 51% from the prior-year quarter to 28.8 million. Moreover, LTM net revenues per active customer increased 0.4% year over year to $451 million.
Total number of orders delivered in the reported quarter was 15.8 million, up 72.8% year over year. In addition, orders per customer for the quarter were 1.94 million, reflecting an increase of 4.9% from the year-ago period. Further, repeat customers placed 11.3 million orders in the third quarter, up 84.4% year over year.
Operating Results
For the third quarter, Wayfair’s gross margin was 29.9%, up 650 basis points on a year-over-year basis.
Adjusted EBITDA margin was 9.7% versus (6.3%) in the year-ago quarter.
The company’s operating expenses of $925.6 million increased 15.8% year over year. Operating income was $221.9 million versus the prior-year loss of $259.7 million.
Balance Sheet & Cash Flow
At third quarter-end, cash, cash equivalents and short-term investments were $2.6 billion, up from $2.4 billion in the prior quarter. Accounts receivables were $109.7 million, down from $119 million in the second quarter.
Cash from operations was $331 million and capital expenditure totaled $41.5 million. Free cash flow was $255 million compared with $105 million in the second quarter.
Long-term earnings growth for Alibaba Group, Overstock.com, and Revolve Group is currently projected at 19.8%, 20% and 17.3%, respectively.
Zacks’ Single Best Pick to Double
From thousands of stocks, 5 Zacks experts each picked their favorite to gain +100% or more in months to come. From those 5, Zacks Director of Research, Sheraz Mian hand-picks one to have the most explosive upside of all.
With users in 180 countries and soaring revenues, it’s set to thrive on remote working long after the pandemic ends. No wonder it recently offered a stunning $600 million stock buy-back plan.
The sky’s the limit for this emerging tech giant. And the earlier you get in, the greater your potential gain.
Image: Bigstock
Wayfair (W) Surpasses Q3 Earnings and Revenue Estimates
Wayfair Inc. (W - Free Report) reported third-quarter 2020 non-GAAP earnings of $2.30 per share, which surpassed the Zacks Consensus Estimate of 81 cents.
Total revenues came in at $3.84 billion, up 66.5% year over year. Also, the figure surpassed the Zacks Consensus Estimate by 4.2%.
The increase in revenues was driven by strong acceleration in new and repeat customer orders. Also, increase in active customers and strength in the company's direct retail business aided year-over-year revenue growth.
Following strong third-quarter results, its share price increased 7.2%.
Wayfair Inc. Price, Consensus and EPS Surprise
Wayfair Inc. price-consensus-eps-surprise-chart | Wayfair Inc. Quote
Quarter in Detail
Direct retail net revenues — including sales generated primarily through Wayfair’s sites — were $3.8 billion, which increased 66.4% year over year.
Net revenues in the United States increased 66.5% year over year to $1.3 billion, while international net revenues grew 66.7% to $225.9 million.
Active customers increased 51% from the prior-year quarter to 28.8 million. Moreover, LTM net revenues per active customer increased 0.4% year over year to $451 million.
Total number of orders delivered in the reported quarter was 15.8 million, up 72.8% year over year. In addition, orders per customer for the quarter were 1.94 million, reflecting an increase of 4.9% from the year-ago period. Further, repeat customers placed 11.3 million orders in the third quarter, up 84.4% year over year.
Operating Results
For the third quarter, Wayfair’s gross margin was 29.9%, up 650 basis points on a year-over-year basis.
Adjusted EBITDA margin was 9.7% versus (6.3%) in the year-ago quarter.
The company’s operating expenses of $925.6 million increased 15.8% year over year. Operating income was $221.9 million versus the prior-year loss of $259.7 million.
Balance Sheet & Cash Flow
At third quarter-end, cash, cash equivalents and short-term investments were $2.6 billion, up from $2.4 billion in the prior quarter. Accounts receivables were $109.7 million, down from $119 million in the second quarter.
Cash from operations was $331 million and capital expenditure totaled $41.5 million. Free cash flow was $255 million compared with $105 million in the second quarter.
Zacks Rank and Stocks to Consider
Wayfair currently carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the broader technology sector include Alibaba Group Holding Limited (BABA - Free Report) , Overstock.com, Inc. and Revolve Group, Inc. (RVLV - Free Report) , each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Long-term earnings growth for Alibaba Group, Overstock.com, and Revolve Group is currently projected at 19.8%, 20% and 17.3%, respectively.
Zacks’ Single Best Pick to Double
From thousands of stocks, 5 Zacks experts each picked their favorite to gain +100% or more in months to come. From those 5, Zacks Director of Research, Sheraz Mian hand-picks one to have the most explosive upside of all.
With users in 180 countries and soaring revenues, it’s set to thrive on remote working long after the pandemic ends. No wonder it recently offered a stunning $600 million stock buy-back plan.
The sky’s the limit for this emerging tech giant. And the earlier you get in, the greater your potential gain.
Click Here, See It Free >>