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ETSY Gears Up for Q4 Earnings: What's in Store for the Stock?
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Etsy (ETSY - Free Report) is scheduled to report fourth-quarter 2022 results on Feb 22.
For the fourth quarter of 2022, Etsy anticipates total revenues between $700 million and $780 million. The Zacks Consensus Estimate for the same is pegged at $753.91 million, indicating an improvement of 5.1% from the prior-year quarter’s reported figure.
The consensus mark for earnings, which has moved south by 5.7% over the past 30 days, is pegged at 82 cents, suggesting a decline of 26.1% from the prior-year quarter’s actuals.
Etsy’s earnings surpassed the Zacks Consensus Estimate in all the trailing four quarters, the average being 37.5%.
Etsy’s fourth-quarter performance is likely to have benefited from its core business. ETSY’s core marketplace is anticipated to have driven its gross merchandise sales.
ETSY’s continuous efforts toward expanding its product offerings to deliver an enhanced customer experience are expected to have contributed well to its top-line growth in the quarter under review.
Etsy has a strong active buyer base in the United States and the U.K. This is likely to have continued to support the soon to-be-reported quarter’s performance.
Increasing investments in marketing to acquire buyers and retain the existing ones are anticipated to have been tailwinds.
Growth in sellers’ unique collection of handicraft items and personalized products on the Etsy platform is expected to have driven the buyer base in the underlined quarter.
Rising investment in core Etsy and subsidiaries, such as Reverb, Depop and Elo7, are anticipated to get reflected in the to-be-reported results.
The expanding global footprint of Etsy Payments, and the strong momentum across Etsy Ads and Offsite Ads are likely to have been other positives in the quarter under discussion.
Etsy’s go-to-market strategy, recommendation features, better shipping options, conversion rate optimization, online search and checkout process optimization, and expanding app use are likely to have been tailwinds.
However, volatile global macroeconomic conditions due to the coronavirus pandemic and the ongoing Ukraine-Russia war are anticipated to have continued to affect consumer spending. This is expected to have been a headwind for Etsy.
Also, the impact of global supply-chain and logistic challenges are expected to get reflected in the upcoming quarterly results.
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. 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 +7.61% and a Zacks Rank #3 at present.
Other Stocks to Consider
Here are some other stocks that you may consider, as our model shows that these also have the right combination of elements to beat on earnings this season.
Grid Dynamics is scheduled to release its fourth-quarter 2022 results on Feb 23. The Zacks Consensus Estimate for GDYN’s earnings is pegged at 11 cents per share, suggesting an increase of 10% from the prior-year quarter’s reported figure.
Adobe (ADBE - Free Report) has an Earnings ESP of +0.42% and a Zacks Rank #3 at present.
Adobe is set to report its first-quarter fiscal 2023 results on March 15. The Zacks Consensus Estimate for ADBE’s earnings is pegged at $3.66 per share, suggesting an increase of 8.6% from the prior-year period’s reported figure.
eBay (EBAY - Free Report) has an Earnings ESP of +1.52% and a Zacks Rank #3 at present.
eBay is scheduled to release its fourth-quarter 2022 results on Feb 22. The Zacks Consensus Estimate for EBAY’s earnings is pegged at $1.05 per share.
Image: Bigstock
ETSY Gears Up for Q4 Earnings: What's in Store for the Stock?
Etsy (ETSY - Free Report) is scheduled to report fourth-quarter 2022 results on Feb 22.
For the fourth quarter of 2022, Etsy anticipates total revenues between $700 million and $780 million. The Zacks Consensus Estimate for the same is pegged at $753.91 million, indicating an improvement of 5.1% from the prior-year quarter’s reported figure.
The consensus mark for earnings, which has moved south by 5.7% over the past 30 days, is pegged at 82 cents, suggesting a decline of 26.1% from the prior-year quarter’s actuals.
Etsy’s earnings surpassed the Zacks Consensus Estimate in all the trailing four quarters, the average being 37.5%.
Etsy, Inc. Price and EPS Surprise
Etsy, Inc. price-eps-surprise | Etsy, Inc. Quote
Key Factors to Note
Etsy’s fourth-quarter performance is likely to have benefited from its core business. ETSY’s core marketplace is anticipated to have driven its gross merchandise sales.
ETSY’s continuous efforts toward expanding its product offerings to deliver an enhanced customer experience are expected to have contributed well to its top-line growth in the quarter under review.
Etsy has a strong active buyer base in the United States and the U.K. This is likely to have continued to support the soon to-be-reported quarter’s performance.
Increasing investments in marketing to acquire buyers and retain the existing ones are anticipated to have been tailwinds.
Growth in sellers’ unique collection of handicraft items and personalized products on the Etsy platform is expected to have driven the buyer base in the underlined quarter.
Rising investment in core Etsy and subsidiaries, such as Reverb, Depop and Elo7, are anticipated to get reflected in the to-be-reported results.
The expanding global footprint of Etsy Payments, and the strong momentum across Etsy Ads and Offsite Ads are likely to have been other positives in the quarter under discussion.
Etsy’s go-to-market strategy, recommendation features, better shipping options, conversion rate optimization, online search and checkout process optimization, and expanding app use are likely to have been tailwinds.
However, volatile global macroeconomic conditions due to the coronavirus pandemic and the ongoing Ukraine-Russia war are anticipated to have continued to affect consumer spending. This is expected to have been a headwind for Etsy.
Also, the impact of global supply-chain and logistic challenges are expected to get reflected in the upcoming quarterly results.
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. 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 +7.61% and a Zacks Rank #3 at present.
Other Stocks to Consider
Here are some other stocks that you may consider, as our model shows that these also have the right combination of elements to beat on earnings this season.
Grid Dynamics (GDYN - Free Report) has an Earnings ESP of +4.76% and a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Grid Dynamics is scheduled to release its fourth-quarter 2022 results on Feb 23. The Zacks Consensus Estimate for GDYN’s earnings is pegged at 11 cents per share, suggesting an increase of 10% from the prior-year quarter’s reported figure.
Adobe (ADBE - Free Report) has an Earnings ESP of +0.42% and a Zacks Rank #3 at present.
Adobe is set to report its first-quarter fiscal 2023 results on March 15. The Zacks Consensus Estimate for ADBE’s earnings is pegged at $3.66 per share, suggesting an increase of 8.6% from the prior-year period’s reported figure.
eBay (EBAY - Free Report) has an Earnings ESP of +1.52% and a Zacks Rank #3 at present.
eBay is scheduled to release its fourth-quarter 2022 results on Feb 22. The Zacks Consensus Estimate for EBAY’s earnings is pegged at $1.05 per share.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.