Wayfair Earnings: What To Look For From W
Online home goods retailer Wayfair (NYSE: W) will be reporting earnings tomorrow before the bell. Here's what investors should know.
Wayfair met analysts' revenue expectations last quarter, reporting revenues of $3.11 billion, flat year on year. It was a weaker quarter for the company, with slow revenue growth. It reported 22.4 million active buyers, up 1.4% year on year.
Is Wayfair a buy or sell going into earnings? Read our full analysis here, it's free.
This quarter, analysts are expecting Wayfair's revenue to decline 4.9% year on year to $2.64 billion, improving from the 7.3% decrease it recorded in the same quarter last year. Adjusted loss is expected to come in at -$0.40 per share.
The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Wayfair has only missed Wall Street's revenue estimates once over the last two years, exceeding top-line expectations by 1% on average.
Looking at Wayfair's peers in the consumer internet segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Meta delivered year-on-year revenue growth of 27.3%, meeting analysts' expectations, and Roku reported revenues up 19%, topping estimates by 3.7%. Meta traded down 10.6% following the results while Roku was also down 10.3%.
Read our full analysis of Meta's results here and Roku's results here.
Growth stocks have been quite volatile since the start of 2024, and while some of the consumer internet stocks have fared somewhat better, they have not been spared, with share prices down 4.4% on average over the last month. Wayfair is down 21.5% during the same time and is heading into earnings with an average analyst price target of $70.2 (compared to the current share price of $50).
Unless you’ve been living under a rock, it should be obvious by now that generative AI is going to have a huge impact on how large corporations do business. While Nvidia and AMD are trading close to all-time highs, we prefer a lesser-known (but still profitable) semiconductor stock benefitting from the rise of AI. Click here to access our free report on our favorite semiconductor growth story.
