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ETSY Gears Up to Report Q3 Earnings: What's in the Cards?
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Etsy (ETSY - Free Report) is scheduled to report third-quarter 2021 results on Nov 3.
For the third quarter, the company anticipates total revenues between $500 million and $525 million, implying year-over-year growth of 13.5% at the mid-point.
The Zacks Consensus Estimate for the same is pegged at $518.5 million, indicating an improvement of 14.9% from the prior-year reported number.
The Zacks Consensus Estimate for earnings stands at 50 cents, suggesting a decline of 28.6% from the prior-year quarter.
The company surpassed the Zacks Consensus Estimate in all the trailing four quarters, with the average earnings surprise being 31.8%.
Etsy is likely to have benefited from its core business and continued momentum in frequency in the third quarter.
Growing sellers’ unique collection of items and personalized products in the Etsy platform are expected to have driven the buyer base in the quarter under review. Also, enhancements in search and discovery are expected to have boosted its momentum among buyers.
Strengthening endeavors toward the advancement of the marketplace platform for both buyers and sellers are anticipated to get reflected in the upcoming quarterly results.
Additionally, growing momentum across the Reverb marketplace is anticipated to have been a tailwind.
Growing efforts toward expanding product offerings for delivering an enhanced customer experience are expected to have contributed well to its quarterly performance.
During the quarter, the company acquired a privately-owned fashion resale marketplace, namely Depop, and a Brazil-based marketplace called Elo7 to expand offerings. The acquisitions are likely to have supported the quarterly performance.
The company has been heavily investing in its app for better customer engagement. This is likely to have aided third-quarter revenues.
Rising brand awareness and TV campaigns mainly in the U.K. and Germany are likely to get reflected in the to-be-reported quarter’s performance.
Yet, volatile global macroeconomic conditions owing to the coronavirus pandemic might have affected consumer spending, which is likely to have hurt its quarterly performance.
What Our Model Says
Our proven model does not conclusively predict 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. But that’s not the case here. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
It has an Earnings ESP of 0.00% and a Zacks Rank #2, at present.
Stocks to Consider
Here are some stocks that you may consider as our model shows that these have the right combination of elements to beat on earnings this season.
Applied Materials (AMAT - Free Report) has an Earnings ESP of +0.52% and a Zacks Rank of 2, at present.
HP Inc. (HPQ - Free Report) has an Earnings ESP of +1.89% and a Zacks Rank of 1, at present.
Image: Bigstock
ETSY Gears Up to Report Q3 Earnings: What's in the Cards?
Etsy (ETSY - Free Report) is scheduled to report third-quarter 2021 results on Nov 3.
For the third quarter, the company anticipates total revenues between $500 million and $525 million, implying year-over-year growth of 13.5% at the mid-point.
The Zacks Consensus Estimate for the same is pegged at $518.5 million, indicating an improvement of 14.9% from the prior-year reported number.
The Zacks Consensus Estimate for earnings stands at 50 cents, suggesting a decline of 28.6% from the prior-year quarter.
The company surpassed the Zacks Consensus Estimate in all the trailing four quarters, with the average earnings surprise being 31.8%.
Etsy, Inc. Price and EPS Surprise
Etsy, Inc. price-eps-surprise | Etsy, Inc. Quote
Key Factors to Note
Etsy is likely to have benefited from its core business and continued momentum in frequency in the third quarter.
Growing sellers’ unique collection of items and personalized products in the Etsy platform are expected to have driven the buyer base in the quarter under review. Also, enhancements in search and discovery are expected to have boosted its momentum among buyers.
Strengthening endeavors toward the advancement of the marketplace platform for both buyers and sellers are anticipated to get reflected in the upcoming quarterly results.
Additionally, growing momentum across the Reverb marketplace is anticipated to have been a tailwind.
Growing efforts toward expanding product offerings for delivering an enhanced customer experience are expected to have contributed well to its quarterly performance.
During the quarter, the company acquired a privately-owned fashion resale marketplace, namely Depop, and a Brazil-based marketplace called Elo7 to expand offerings. The acquisitions are likely to have supported the quarterly performance.
The company has been heavily investing in its app for better customer engagement. This is likely to have aided third-quarter revenues.
Rising brand awareness and TV campaigns mainly in the U.K. and Germany are likely to get reflected in the to-be-reported quarter’s performance.
Yet, volatile global macroeconomic conditions owing to the coronavirus pandemic might have affected consumer spending, which is likely to have hurt its quarterly performance.
What Our Model Says
Our proven model does not conclusively predict 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. But that’s not the case here. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
It has an Earnings ESP of 0.00% and a Zacks Rank #2, at present.
Stocks to Consider
Here are some stocks that you may consider as our model shows that these have the right combination of elements to beat on earnings this season.
Applied Materials (AMAT - Free Report) has an Earnings ESP of +0.52% and a Zacks Rank of 2, at present.
HP Inc. (HPQ - Free Report) has an Earnings ESP of +1.89% and a Zacks Rank of 1, at present.
NetApp, Inc. (NTAP - Free Report) has an Earnings ESP of +3.70% and a Zacks Rank of 2, at present. You can see the complete list of today’s Zacks #1 Rank stocks here.