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ETSY Gears Up to Report Q1 Earnings: What's in the Cards?
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Etsy (ETSY - Free Report) is scheduled to report first-quarter 2023 results on May 3.
For the first quarter of 2023, Etsy anticipates total revenues between $600 million and $640 million. The Zacks Consensus Estimate for the same is pegged at $623.19 million, indicating an improvement of 7.58% from the prior-year quarter’s reported figure.
The consensus mark for earnings is pegged at 48 cents, suggesting a decline of 20% from the prior-year quarter’s actuals. This figure has increased by 2.1% in the past seven days.
Etsy’s earnings beat the Zacks Consensus Estimate in three of the trailing four quarters but missed the same on the other occasion, the earnings surprise being 24.52%, on average.
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.
The company’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, Germany, and the U.K. This is likely to have continued to support the soon-to-be-reported quarter’s performance. The company’s progress in its newest core market, India, is also expected to have been a positive.
Increasing consumer demand for services and household supplies like groceries is expected to have impacted Etsy’s top line in the first 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 the other positives in the quarter under discussion.
Additionally, continuous efforts to increase brand awareness are likely to get reflected in the to-be-reported quarter’s results.
Further, increasing investments in marketing to acquire buyers and retain the existing ones are anticipated to have remained tailwinds.
Moreover, 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 proved beneficial.
However, the impact of global supply-chain constraints, sluggish consumer discretionary spending and macroeconomic uncertainties might get reflected in the upcoming quarterly results.
Also, 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 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 +6.19% and a Zacks Rank #3 at present.
Other Stocks to Consider
Here are some stocks worth considering as our model shows that these also have the right combination of elements to beat on earnings this season.
DOCN is scheduled to release first-quarter 2023 results on May 9. The Zacks Consensus Estimate for DOCN’s earnings is pegged at 29 cents per share, suggesting a jump from 7 cents per share reported in the prior-year quarter.
BILL Holdings, Inc. (BILL - Free Report) has an Earnings ESP of +1.89% and a Zacks Rank #3 at present.
BILL Holdings is set to report third-quarter fiscal 2023 results on May 4. The Zacks Consensus Estimate for BILL’s earnings is pegged at 24 cents per share. The company incurred a loss of 8 cents per share in the year-ago quarter.
Ceridian HCM has an Earnings ESP of +9.09% and a Zacks Rank #3 at present.
CDAY is scheduled to report first-quarter 2023 results on May 3. The Zacks Consensus Estimate for CDAY’s earnings is pegged at 33 cents per share, suggesting an increase of 153.8% from the prior-year quarter’s reported figure.
Image: Bigstock
ETSY Gears Up to Report Q1 Earnings: What's in the Cards?
Etsy (ETSY - Free Report) is scheduled to report first-quarter 2023 results on May 3.
For the first quarter of 2023, Etsy anticipates total revenues between $600 million and $640 million. The Zacks Consensus Estimate for the same is pegged at $623.19 million, indicating an improvement of 7.58% from the prior-year quarter’s reported figure.
The consensus mark for earnings is pegged at 48 cents, suggesting a decline of 20% from the prior-year quarter’s actuals. This figure has increased by 2.1% in the past seven days.
Etsy’s earnings beat the Zacks Consensus Estimate in three of the trailing four quarters but missed the same on the other occasion, the earnings surprise being 24.52%, on average.
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.
The company’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, Germany, and the U.K. This is likely to have continued to support the soon-to-be-reported quarter’s performance. The company’s progress in its newest core market, India, is also expected to have been a positive.
Increasing consumer demand for services and household supplies like groceries is expected to have impacted Etsy’s top line in the first 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 the other positives in the quarter under discussion.
Additionally, continuous efforts to increase brand awareness are likely to get reflected in the to-be-reported quarter’s results.
Further, increasing investments in marketing to acquire buyers and retain the existing ones are anticipated to have remained tailwinds.
Moreover, 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 proved beneficial.
However, the impact of global supply-chain constraints, sluggish consumer discretionary spending and macroeconomic uncertainties might get reflected in the upcoming quarterly results.
Also, 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 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 +6.19% and a Zacks Rank #3 at present.
Other Stocks to Consider
Here are some stocks worth considering as our model shows that these also have the right combination of elements to beat on earnings this season.
DigitalOcean (DOCN - Free Report) has an Earnings ESP of +2.30% and a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
DOCN is scheduled to release first-quarter 2023 results on May 9. The Zacks Consensus Estimate for DOCN’s earnings is pegged at 29 cents per share, suggesting a jump from 7 cents per share reported in the prior-year quarter.
BILL Holdings, Inc. (BILL - Free Report) has an Earnings ESP of +1.89% and a Zacks Rank #3 at present.
BILL Holdings is set to report third-quarter fiscal 2023 results on May 4. The Zacks Consensus Estimate for BILL’s earnings is pegged at 24 cents per share. The company incurred a loss of 8 cents per share in the year-ago quarter.
Ceridian HCM has an Earnings ESP of +9.09% and a Zacks Rank #3 at present.
CDAY is scheduled to report first-quarter 2023 results on May 3. The Zacks Consensus Estimate for CDAY’s earnings is pegged at 33 cents per share, suggesting an increase of 153.8% from the prior-year quarter’s reported figure.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.