Wayfair Inc. (W - Free Report) reported non-GAAP loss of $1.12 per share in the fourth quarter of 2018, narrower than the Zacks Consensus Estimate of $1.24 and the year-ago figure of $1.28.
Total fourth-quarter revenues came in at $2.01 billion, up 39.9% year over year. The figure also outpaced the Zacks Consensus Estimate of $1.88 billion.
The year-over-year increase in revenues was driven by strengthening of the company’s direct retail business across international regions.
Following the earnings release, its shares increased more than27%.
Quarter in Detail
The company’s direct retail net revenues, which include sales generated primarily through Wayfair’s sites, were $1.996 billion in the fourth quarter, increasing 40.6% year over year.
Active customers increased 37.9% from the prior-year quarter to 15.2 million. Also, LTM net revenues per active customer increased 5% year over year to $443 million.
Total number of orders delivered in the reported quarter was 8.8 million, up 42% year over year. Orders per customer in the quarter were 1.85 million, reflecting an increase of 4% from the year-ago period. Further, repeat customers placed 5.8 million orders in the fourth quarter, up 51.1% year over year.
Operating Results
In the fourth quarter, Wayfair’s gross margin was 24.1%, up 100 basis points on a year-over-year basis.
Adjusted EBITDA margin was (2.7%) million compared with (1.5%) in the year-ago quarter. This was led by increasing investments, mainly in the international regions.
The company’s operating expenses of $614.7 million increased 53.7% year over year. Operating loss came in at $142.8 million, which was wider than the prior-year quarter’s $73 million.
Balance Sheet & Cash Flow
At the end of fourth quarter, cash, cash equivalents and short-term investments were $963.7 million, up from $518.7 million in the comparable year-ago period. Accounts receivables were $50.6 million, up from $41 million in the third quarter.
Cash from operations was $42.5 million and capital expenditure totaled $48.7 million. Free cash flow was ($23.2) million compared with ($58.8) million in the third 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 Expedia Group, Inc. (EXPE - Free Report) , AMETEK, Inc. (AME - Free Report) and Inphi Corporation , 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 rate for Expedia, AMETEK and Inphi is projected to be 13.4%, 9.6% and 18.5%, respectively.
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Wayfair Inc. (W - Free Report) reported non-GAAP loss of $1.12 per share in the fourth quarter of 2018, narrower than the Zacks Consensus Estimate of $1.24 and the year-ago figure of $1.28.
Total fourth-quarter revenues came in at $2.01 billion, up 39.9% year over year. The figure also outpaced the Zacks Consensus Estimate of $1.88 billion.
The year-over-year increase in revenues was driven by strengthening of the company’s direct retail business across international regions.
Following the earnings release, its shares increased more than27%.
Quarter in Detail
The company’s direct retail net revenues, which include sales generated primarily through Wayfair’s sites, were $1.996 billion in the fourth quarter, increasing 40.6% year over year.
Active customers increased 37.9% from the prior-year quarter to 15.2 million. Also, LTM net revenues per active customer increased 5% year over year to $443 million.
Total number of orders delivered in the reported quarter was 8.8 million, up 42% year over year. Orders per customer in the quarter were 1.85 million, reflecting an increase of 4% from the year-ago period. Further, repeat customers placed 5.8 million orders in the fourth quarter, up 51.1% year over year.
Operating Results
In the fourth quarter, Wayfair’s gross margin was 24.1%, up 100 basis points on a year-over-year basis.
Adjusted EBITDA margin was (2.7%) million compared with (1.5%) in the year-ago quarter. This was led by increasing investments, mainly in the international regions.
The company’s operating expenses of $614.7 million increased 53.7% year over year. Operating loss came in at $142.8 million, which was wider than the prior-year quarter’s $73 million.
Balance Sheet & Cash Flow
At the end of fourth quarter, cash, cash equivalents and short-term investments were $963.7 million, up from $518.7 million in the comparable year-ago period. Accounts receivables were $50.6 million, up from $41 million in the third quarter.
Cash from operations was $42.5 million and capital expenditure totaled $48.7 million. Free cash flow was ($23.2) million compared with ($58.8) million in the third 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 Expedia Group, Inc. (EXPE - Free Report) , AMETEK, Inc. (AME - Free Report) and Inphi Corporation , 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 rate for Expedia, AMETEK and Inphi is projected to be 13.4%, 9.6% and 18.5%, respectively.
This Could Be the Fastest Way to Grow Wealth in 2019
Research indicates one sector is poised to deliver a crop of the best-performing stocks you'll find anywhere in the market. Breaking news in this space frequently creates quick double- and triple-digit profit opportunities.
These companies are changing the world – and owning their stocks could transform your portfolio in 2019 and beyond. Recent trades from this sector have generated +98%, +119% and +164% gains in as little as 1 month.
Click here to see these breakthrough stocks now >>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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