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) to Report Q4 Earnings: What's in the Cards?
Read MoreHide Full Article
Wayfair, Inc. (W - Free Report) is scheduled to report fourth-quarter 2020 results on Feb 25.
For fourth-quarter 2020, the Zacks Consensus Estimate for sales is currently pegged at $3.75 billion, indicating an improvement of 48% from the prior-year reported figure.
Further, the Zacks Consensus Estimate for earnings is pegged at 91 cents per share, implying an increase of 132.5% from the year-ago reported figure.
The company missed the Zacks Consensus Estimate in three of the trailing four quarters, delivering an earnings surprise of 98.7%, on average.
Increase in online home furnishing orders is likely to have driven Wayfair’s performance in the quarter to be reported. It added many new customers amid the coronavirus pandemic. Therefore, the business is anticipated to have helped the company bolster active customer base in the quarter under review.
Net active customers accelerated to 28.8 million in the third quarter. The trend is expected to have continued in the to-be-reported quarter, driven by continued 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 fourth quarter. This is likely to get reflected in the company’s fourth-quarter results.
It announced new features in its mobile app, which allows customers to better visualize how certain items appear in their homes. Increasing use of mobile amid this pandemic resulted in strong sales in the third 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 fourth-quarter performance might have benefited from 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 fourth-quarter performance.
What Our Model Says
Our proven model does not conclusively predict 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 -14.50% and a Zacks Rank #2, at present.
Stocks to Consider
Here are some companies that have the right combination of elements to post an earnings beat in the to-be-reported quarter:
Vipshop Holdings Limited (VIPS - Free Report) has an Earnings ESP of +6.25% and carries a Zacks Rank of 3, currently.
Etsy, Inc. (ETSY - Free Report) has an Earnings ESP of +0.75% and currently carries a Zacks Rank of 3.
Breakout Biotech Stocks with Triple-Digit Profit Potential
The biotech sector is projected to surge beyond $775 billion by 2024 as scientists develop treatments for thousands of diseases. They’re also finding ways to edit the human genome to literally erase our vulnerability to these diseases.
Zacks has just released Century of Biology: 7 Biotech Stocks to Buy Right Now to help investors profit from 7 stocks poised for outperformance. Our recent biotech recommendations have produced gains of +50%, +83% and +164% in as little as 2 months. The stocks in this report could perform even better.
Image: Bigstock
Wayfair (W) to Report Q4 Earnings: What's in the Cards?
Wayfair, Inc. (W - Free Report) is scheduled to report fourth-quarter 2020 results on Feb 25.
For fourth-quarter 2020, the Zacks Consensus Estimate for sales is currently pegged at $3.75 billion, indicating an improvement of 48% from the prior-year reported figure.
Further, the Zacks Consensus Estimate for earnings is pegged at 91 cents per share, implying an increase of 132.5% from the year-ago reported figure.
The company missed the Zacks Consensus Estimate in three of the trailing four quarters, delivering an earnings surprise of 98.7%, on average.
Wayfair Inc. Price and EPS Surprise
Wayfair Inc. price-eps-surprise | Wayfair Inc. Quote
Factors to Note
Increase in online home furnishing orders is likely to have driven Wayfair’s performance in the quarter to be reported. It added many new customers amid the coronavirus pandemic. Therefore, the business is anticipated to have helped the company bolster active customer base in the quarter under review.
Net active customers accelerated to 28.8 million in the third quarter. The trend is expected to have continued in the to-be-reported quarter, driven by continued 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 fourth quarter. This is likely to get reflected in the company’s fourth-quarter results.
It announced new features in its mobile app, which allows customers to better visualize how certain items appear in their homes. Increasing use of mobile amid this pandemic resulted in strong sales in the third 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 fourth-quarter performance might have benefited from 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 fourth-quarter performance.
What Our Model Says
Our proven model does not conclusively predict 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 -14.50% and a Zacks Rank #2, at present.
Stocks to Consider
Here are some companies that have the right combination of elements to post an earnings beat in the to-be-reported quarter:
TopBuild Corp. (BLD - Free Report) has an Earnings ESP of +6.66% and carries a Zacks Rank of 2, at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Vipshop Holdings Limited (VIPS - Free Report) has an Earnings ESP of +6.25% and carries a Zacks Rank of 3, currently.
Etsy, Inc. (ETSY - Free Report) has an Earnings ESP of +0.75% and currently carries a Zacks Rank of 3.
Breakout Biotech Stocks with Triple-Digit Profit Potential
The biotech sector is projected to surge beyond $775 billion by 2024 as scientists develop treatments for thousands of diseases. They’re also finding ways to edit the human genome to literally erase our vulnerability to these diseases.
Zacks has just released Century of Biology: 7 Biotech Stocks to Buy Right Now to help investors profit from 7 stocks poised for outperformance. Our recent biotech recommendations have produced gains of +50%, +83% and +164% in as little as 2 months. The stocks in this report could perform even better.
See these 7 breakthrough stocks now>>