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ETSY Gears Up for Q1 Earnings: What's in the Cards?
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Etsy (ETSY - Free Report) is scheduled to report first-quarter 2022 results on May 4.
For the fourth quarter of 2021, Etsy anticipates total revenues between $565 million and $590 million. The Zacks Consensus Estimate for the same is pegged at $576.1 million, indicating an improvement of 4.61% from the prior-year quarter’s reported number.
Further, the consensus mark for earnings has decreased 1.7% in the past seven days to 59 cents, suggesting a decline of 41% from the prior-year quarter’s actuals.
Etsy’s earnings surpassed the Zacks Consensus Estimate in all the trailing four quarters, the average being 26.1%.
Etsy’s first-quarter performance is likely to have benefited from its core business. ETSY’s core marketplace might have driven its gross merchandise sales.
Growing sellers’ unique collection of items and personalized products in the Etsy platform are expected to have continued driving the buyer base in the underlined quarter.
Positive contributions from Depop and Elo7 acquisitions are anticipated to get reflected in the to-be-reported results.
Etsy is consistently working toward expanding its product offerings to deliver an enhanced customer experience. This is expected to have contributed well to its top-line growth in the quarter under review.
Continuous efforts to increase brand awareness are likely to get reflected in the to-be-reported quarter’s results.
Increasing investments to focus on acquiring new buyers as well as retain the existing ones are anticipated to have remained tailwinds.
Further, Etsy’s go-to market strategy, recommendation features, better shipping options, conversion rate optimization, online search and checkout process optimization and expanding app usage are likely to have remained other positives.
Yet, volatile global macroeconomic conditions due to the coronavirus pandemic might have persistently affected consumer spending, which is likely to have hurt its quarterly performance.
Also, the impact of global supply chain and logistics challenges might get reflected in the upcoming quarterly results.
Additionally, intensifying competition in the e-commerce market is expected to have remained a concern for Etsy’s market position in the to-be-reported quarter.
What Our Model Says
Our proven model conclusively predicts an 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, which is the case here. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Etsyhas an Earnings ESP of +16.39% and a Zacks Rank #3 at present.
Other Stocks to Consider
Here are some other stocks worth considering as our model shows that these have the right combination of elements to beat on earnings this season.
Analog Devices is scheduled to release second-quarter fiscal 2022 results on May 18. The Zacks Consensus Estimate for ADI’s earnings is pegged at $2.12 per share, suggesting an increase of 37.7% from the prior-year quarter’s reported figure.
Cisco Systems (CSCO - Free Report) has an Earnings ESP of +0.84% and a Zacks Rank #2 at present.
Cisco Systems is set to report third-quarter fiscal 2022 results on May 18. The Zacks Consensus Estimate for CSCO’s earnings is pegged at 86 cents per share, which suggests an increase of 3.61% from the prior-year quarter’s reported figure.
HP (HPQ - Free Report) has an Earnings ESP of +0.78% and a Zacks Rank of 3 at present.
HP is scheduled to release second-quarter fiscal 2022 results on May 26. The Zacks Consensus Estimate for HPQ’s earnings is pegged at $1.06 per share, which suggests an increase of 13.98% from the prior-year quarter’s reported figure.
Image: Bigstock
ETSY Gears Up for Q1 Earnings: What's in the Cards?
Etsy (ETSY - Free Report) is scheduled to report first-quarter 2022 results on May 4.
For the fourth quarter of 2021, Etsy anticipates total revenues between $565 million and $590 million. The Zacks Consensus Estimate for the same is pegged at $576.1 million, indicating an improvement of 4.61% from the prior-year quarter’s reported number.
Further, the consensus mark for earnings has decreased 1.7% in the past seven days to 59 cents, suggesting a decline of 41% from the prior-year quarter’s actuals.
Etsy’s earnings surpassed the Zacks Consensus Estimate in all the trailing four quarters, the average being 26.1%.
Etsy, Inc. Price and EPS Surprise
Etsy, Inc. price-eps-surprise | Etsy, Inc. Quote
Key Factors to Note
Etsy’s first-quarter performance is likely to have benefited from its core business. ETSY’s core marketplace might have driven its gross merchandise sales.
Growing sellers’ unique collection of items and personalized products in the Etsy platform are expected to have continued driving the buyer base in the underlined quarter.
Positive contributions from Depop and Elo7 acquisitions are anticipated to get reflected in the to-be-reported results.
Etsy is consistently working toward expanding its product offerings to deliver an enhanced customer experience. This is expected to have contributed well to its top-line growth in the quarter under review.
Continuous efforts to increase brand awareness are likely to get reflected in the to-be-reported quarter’s results.
Increasing investments to focus on acquiring new buyers as well as retain the existing ones are anticipated to have remained tailwinds.
Further, Etsy’s go-to market strategy, recommendation features, better shipping options, conversion rate optimization, online search and checkout process optimization and expanding app usage are likely to have remained other positives.
Yet, volatile global macroeconomic conditions due to the coronavirus pandemic might have persistently affected consumer spending, which is likely to have hurt its quarterly performance.
Also, the impact of global supply chain and logistics challenges might get reflected in the upcoming quarterly results.
Additionally, intensifying competition in the e-commerce market is expected to have remained a concern for Etsy’s market position in the to-be-reported quarter.
What Our Model Says
Our proven model conclusively predicts an 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, which is the case here. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Etsyhas an Earnings ESP of +16.39% and a Zacks Rank #3 at present.
Other Stocks to Consider
Here are some other stocks worth considering as our model shows that these have the right combination of elements to beat on earnings this season.
Analog Devices (ADI - Free Report) has an Earnings ESP of +2.17% and a Zacks Rank of 2 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Analog Devices is scheduled to release second-quarter fiscal 2022 results on May 18. The Zacks Consensus Estimate for ADI’s earnings is pegged at $2.12 per share, suggesting an increase of 37.7% from the prior-year quarter’s reported figure.
Cisco Systems (CSCO - Free Report) has an Earnings ESP of +0.84% and a Zacks Rank #2 at present.
Cisco Systems is set to report third-quarter fiscal 2022 results on May 18. The Zacks Consensus Estimate for CSCO’s earnings is pegged at 86 cents per share, which suggests an increase of 3.61% from the prior-year quarter’s reported figure.
HP (HPQ - Free Report) has an Earnings ESP of +0.78% and a Zacks Rank of 3 at present.
HP is scheduled to release second-quarter fiscal 2022 results on May 26. The Zacks Consensus Estimate for HPQ’s earnings is pegged at $1.06 per share, which suggests an increase of 13.98% from the prior-year quarter’s reported figure.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.