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Wayfair (W) to Report Q3 Earnings: What's in the Cards? (Revised)
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Wayfair, Inc. (W - Free Report) is scheduled to report third-quarter 2020 results on Nov 3.
For third-quarter 2020, the Zacks Consensus Estimate for sales is currently pegged at $3.70 billion, indicating an improvement of 60.3% from the prior-year quarter.
Further, the Zacks Consensus Estimate for earnings is pegged at 84 cents per share, implying an increase of 137.7% from the year-ago reported figure.
The company missed the Zacks Consensus Estimate in two of the trailing four quarters, delivering an earnings surprise of 51.5%, on average.
The coronavirus pandemic-led spike in online home furnishing orders is likely to have driven the company’s performance in the quarter to be reported. It added many new customers amid the coronavirus pandemic. Therefore, the business is anticipated to have bolstered its active customer base in the quarter under review.
Net active customers had accelerated to 26 million in the second quarter. The trend is expected to have continued in the to-be-reported quarter, driven by persistent consumer migration to e-commerce, thereby expanding the company’s top-line growth.
It is expected to have witnessed strong demand across most home goods categories in both U.S. and International segments during the third quarter. This is likely to get reflected in the company’s third-quarter results.
In addition, it announced new features for its mobile app, which allows customers to better visualize how certain items appear in their homes. The increasing use of mobile amid this pandemic had resulted in strong sales in the second quarter. This trend is again expected to have continued in the quarter to be reported and converted high traffic to sales for the company.
Also, Wayfair’s third-quarter performance might have benefited from the strengthening direct retail business across the United States and international regions.
Further, the company’s growing efforts for expanding house-brand offerings in the U.K. and North America are expected to have contributed to third-quarter performance.
What Our Model Says
Our proven model does not conclusively show that Wayfair is likely to beat estimates 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.
Wayfair has an Earnings ESP of -65.54% and a Zacks Rank #3.
Stocks to Consider
Here are some companies, which have the right combination of elements to post an earnings beat in the to-be-reported quarter:
MercadoLibre, Inc. (MELI - Free Report) has an Earnings ESP of +269.05% and carries a Zacks Rank of 1, at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
NVIDIA Corporation (NVDA - Free Report) has an Earnings ESP of +1.75% and carries a Zacks Rank of 2, currently.
Marchex, Inc. (MCHX - Free Report) has an Earnings ESP of +16.67% and currently carries a Zacks Rank of 2.
(We are reissuing this article to correct a mistake. The original article, issued on October 30, 2020, should no longer be relied upon.)
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Wayfair (W) to Report Q3 Earnings: What's in the Cards? (Revised)
Wayfair, Inc. (W - Free Report) is scheduled to report third-quarter 2020 results on Nov 3.
For third-quarter 2020, the Zacks Consensus Estimate for sales is currently pegged at $3.70 billion, indicating an improvement of 60.3% from the prior-year quarter.
Further, the Zacks Consensus Estimate for earnings is pegged at 84 cents per share, implying an increase of 137.7% from the year-ago reported figure.
The company missed the Zacks Consensus Estimate in two of the trailing four quarters, delivering an earnings surprise of 51.5%, on average.
Wayfair Inc. Price and EPS Surprise
Wayfair Inc. price-eps-surprise | Wayfair Inc. Quote
Factors to Note
The coronavirus pandemic-led spike in online home furnishing orders is likely to have driven the company’s performance in the quarter to be reported. It added many new customers amid the coronavirus pandemic. Therefore, the business is anticipated to have bolstered its active customer base in the quarter under review.
Net active customers had accelerated to 26 million in the second quarter. The trend is expected to have continued in the to-be-reported quarter, driven by persistent consumer migration to e-commerce, thereby expanding the company’s top-line growth.
It is expected to have witnessed strong demand across most home goods categories in both U.S. and International segments during the third quarter. This is likely to get reflected in the company’s third-quarter results.
In addition, it announced new features for its mobile app, which allows customers to better visualize how certain items appear in their homes. The increasing use of mobile amid this pandemic had resulted in strong sales in the second quarter. This trend is again expected to have continued in the quarter to be reported and converted high traffic to sales for the company.
Also, Wayfair’s third-quarter performance might have benefited from the strengthening direct retail business across the United States and international regions.
Further, the company’s growing efforts for expanding house-brand offerings in the U.K. and North America are expected to have contributed to third-quarter performance.
What Our Model Says
Our proven model does not conclusively show that Wayfair is likely to beat estimates 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.
Wayfair has an Earnings ESP of -65.54% and a Zacks Rank #3.
Stocks to Consider
Here are some companies, which have the right combination of elements to post an earnings beat in the to-be-reported quarter:
MercadoLibre, Inc. (MELI - Free Report) has an Earnings ESP of +269.05% and carries a Zacks Rank of 1, at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
NVIDIA Corporation (NVDA - Free Report) has an Earnings ESP of +1.75% and carries a Zacks Rank of 2, currently.
Marchex, Inc. (MCHX - Free Report) has an Earnings ESP of +16.67% and currently carries a Zacks Rank of 2.
(We are reissuing this article to correct a mistake. The original article, issued on October 30, 2020, should no longer be relied upon.)