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ETSY Gears Up to Report Q3 Earnings: What's in the Cards?
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Etsy (ETSY - Free Report) is scheduled to report its third-quarter 2023 results on Nov 1.
For the third quarter of 2023, Etsy anticipates total revenues between $610 million and $645 million. The Zacks Consensus Estimate for the same is pegged at $630.68 million, indicating an improvement of 6.1% from the prior-year quarter’s reported figure.
The consensus mark for earnings is pegged at 50 cents, suggesting a decline of 13.8% from the prior-year quarter’s actuals. This figure has remained unchanged over the past 30 days.
Etsy’s earnings beat the Zacks Consensus Estimate in three of the trailing four quarters but missed the same on the other occasion, the earnings surprise being 40.88%, on average.
The company’s third-quarter 2023 results are expected to have benefited from solid momentum across buyers and sellers.
Growing investments in seller growth suites, including personalized insights for sellers and the Make an Offer program to help sellers price their items appropriately, are likely to have driven Etsy’s momentum among sellers during the third quarter. The Zacks Consensus Estimate for active sellers stands at 8.4 million, indicating growth of 13.2% from the year-ago reported figure.
Further, the increasing retention of active buyers, as well as the reactivation of lapsed buyers, is likely to have aided ETSY’s performance in the to-be-reported quarter. The Zacks Consensus Estimate for active buyers stands at 96.6 million, indicating growth of 2.6% year over year.
Also, growing momentum in Etsy ads due to continued product optimization is expected to have aided the Services revenues during the quarter to be reported.
Additionally, strength in Etsy payments and seller transaction fee increases are likely to have bolstered the Marketplace revenues in the quarter under review.
Moreover, Etsy’s purchase protection services to gain buyers’ confidence by reducing issue resolution time and streamlining service experience is expected to have benefited the upcoming quarterly results.
This apart, positive order growth, moderating forex headwinds, and healthy growth in select international markets are likely to have positively impacted gross merchandise sales (GMS).
The consensus mark for GMS is pegged at $3.02 billion, indicating growth of 0.7% from the reported figure in the prior-year quarter.
However, sluggish consumer discretionary spending across lower-income households due to winding down high savings, student loan payments and discontinuation of child tax credits is likely to have been a headwind for the company.
Moreover, weakness in larger product categories like home & living is expected to have been a negative.
Also, accelerating costs related to the shift to Offsite Ads and increasing marketing expenses are expected to have acted as headwinds.
What Our Model Says
Our proven model predicts a likely earnings beat for Etsy this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Etsy has an Earnings ESP of +4.04% and a Zacks Rank #3 at present.
Stocks to Consider
Here are some companies worth considering from the same space, as our model shows that these have the right combination of elements to beat on earnings in the soon-to-be-reported quarterly results.
GoDaddy is scheduled to release third-quarter 2023 results on Nov 2. The Zacks Consensus Estimate for GDDY’s earnings is pegged at 71 cents per share, suggesting growth of 12.7% from the prior-year period’s reported figure.
BILL Holdings (BILL - Free Report) has an Earnings ESP of +4.42% and a Zacks Rank #3 at present
BILL Holdings is set to report first-quarter fiscal 2024 results on Nov 2. The Zacks Consensus Estimate for BILL’s earnings is pegged at 50 cents per share, indicating an increase from the prior-year quarter’s reported figure of 14 cents.
Fastly (FSLY - Free Report) has an Earnings ESP of +17.24% and a Zacks Rank #2 at present.
Fastly is set to report third-quarter 2023 results on Nov 1. The Zacks Consensus Estimate for FSLY’s earnings is pegged at a loss of 7 cents per share, suggesting growth of 50% from the prior-year period’s reported figure.
Image: Bigstock
ETSY Gears Up to Report Q3 Earnings: What's in the Cards?
Etsy (ETSY - Free Report) is scheduled to report its third-quarter 2023 results on Nov 1.
For the third quarter of 2023, Etsy anticipates total revenues between $610 million and $645 million. The Zacks Consensus Estimate for the same is pegged at $630.68 million, indicating an improvement of 6.1% from the prior-year quarter’s reported figure.
The consensus mark for earnings is pegged at 50 cents, suggesting a decline of 13.8% from the prior-year quarter’s actuals. This figure has remained unchanged over the past 30 days.
Etsy’s earnings beat the Zacks Consensus Estimate in three of the trailing four quarters but missed the same on the other occasion, the earnings surprise being 40.88%, on average.
Etsy, Inc. Price and EPS Surprise
Etsy, Inc. price-eps-surprise | Etsy, Inc. Quote
Key Factors to Note
The company’s third-quarter 2023 results are expected to have benefited from solid momentum across buyers and sellers.
Growing investments in seller growth suites, including personalized insights for sellers and the Make an Offer program to help sellers price their items appropriately, are likely to have driven Etsy’s momentum among sellers during the third quarter. The Zacks Consensus Estimate for active sellers stands at 8.4 million, indicating growth of 13.2% from the year-ago reported figure.
Further, the increasing retention of active buyers, as well as the reactivation of lapsed buyers, is likely to have aided ETSY’s performance in the to-be-reported quarter. The Zacks Consensus Estimate for active buyers stands at 96.6 million, indicating growth of 2.6% year over year.
Also, growing momentum in Etsy ads due to continued product optimization is expected to have aided the Services revenues during the quarter to be reported.
Additionally, strength in Etsy payments and seller transaction fee increases are likely to have bolstered the Marketplace revenues in the quarter under review.
Moreover, Etsy’s purchase protection services to gain buyers’ confidence by reducing issue resolution time and streamlining service experience is expected to have benefited the upcoming quarterly results.
This apart, positive order growth, moderating forex headwinds, and healthy growth in select international markets are likely to have positively impacted gross merchandise sales (GMS).
The consensus mark for GMS is pegged at $3.02 billion, indicating growth of 0.7% from the reported figure in the prior-year quarter.
However, sluggish consumer discretionary spending across lower-income households due to winding down high savings, student loan payments and discontinuation of child tax credits is likely to have been a headwind for the company.
Moreover, weakness in larger product categories like home & living is expected to have been a negative.
Also, accelerating costs related to the shift to Offsite Ads and increasing marketing expenses are expected to have acted as headwinds.
What Our Model Says
Our proven model predicts a likely earnings beat for Etsy this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Etsy has an Earnings ESP of +4.04% and a Zacks Rank #3 at present.
Stocks to Consider
Here are some companies worth considering from the same space, as our model shows that these have the right combination of elements to beat on earnings in the soon-to-be-reported quarterly results.
GoDaddy (GDDY - Free Report) has an Earnings ESP of +14.09% and a Zacks Rank #1 at present. You can see the complete list of today's Zacks #1 Rank stocks here.
GoDaddy is scheduled to release third-quarter 2023 results on Nov 2. The Zacks Consensus Estimate for GDDY’s earnings is pegged at 71 cents per share, suggesting growth of 12.7% from the prior-year period’s reported figure.
BILL Holdings (BILL - Free Report) has an Earnings ESP of +4.42% and a Zacks Rank #3 at present
BILL Holdings is set to report first-quarter fiscal 2024 results on Nov 2. The Zacks Consensus Estimate for BILL’s earnings is pegged at 50 cents per share, indicating an increase from the prior-year quarter’s reported figure of 14 cents.
Fastly (FSLY - Free Report) has an Earnings ESP of +17.24% and a Zacks Rank #2 at present.
Fastly is set to report third-quarter 2023 results on Nov 1. The Zacks Consensus Estimate for FSLY’s earnings is pegged at a loss of 7 cents per share, suggesting growth of 50% from the prior-year period’s reported figure.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.