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ETSY Gears Up to Report Q4 Earnings: What's in the Cards?
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Etsy (ETSY - Free Report) is scheduled to report fourth-quarter 2021 results on Feb 24.
For the fourth quarter, the company anticipates total revenues between $660 million and $690 million, suggesting year-over-year growth of 10% at the mid-point.
The Zacks Consensus Estimate for the same is pegged at $686.3 million, indicating an improvement of 11.2% from the prior-year reported number.
Further, the consensus mark for earnings has increased 4.1% in the past 30 days to 76 cents, suggesting a decline of 29.6% from the prior-year quarter.
The company surpassed the Zacks Consensus Estimate in the trailing four quarters, with the average earnings surprise being 34.6%.
Etsy’s fourth-quarter results are likely to reflect the benefits from core business. Its core marketplace is expected to have driven the company’s gross merchandise sales.
Growing efforts toward expanding product offerings for delivering an enhanced customer experience are expected to have contributed well to ETSY’s quarterly performance.
In addition, growing sellers’ unique collection of items and personalized products in the Etsy platform is expected to have driven the buyer base in the fourth quarter. Also, enhancements in search and discovery are expected to have boosted its momentum among buyers.
Strong traction across habitual and repeat buyers is expected to have continued strengthening momentum in frequency in the fourth quarter.
The company has been heavily investing in its app for better customer engagement. This is likely to have contributed well to fourth-quarter revenues.
Rising brand awareness is likely to have benefited ETSY’s performance in the to-be-reported quarter.
ETSY has been working to provide localized experiences in key geographies outside the United States. This is expected to have been a tailwind in the quarter under review.
Further, positive contributions from Reverb, Depop, and Elo7 acquisitions are anticipated to have remained a tailwind in the fourth quarter.
Yet, volatile global macroeconomic conditions owing to the coronavirus pandemic might have affected consumer spending, which is likely to have hurt its quarterly performance.
Further, 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.
It has an Earnings ESP of +7.63% and a Zacks Rank #3, at present.
Other Stocks to Consider
Here are some other stocks that you may also consider as our model shows that these too have the right combination of elements to beat on earnings this season.
DICK’s is scheduled to release fourth-quarter fiscal 2022 results on Mar 8. The Zacks Consensus Estimate for DKS’ earnings is pegged at $3.39 per share, suggesting an increase of 39.5% from the prior-year reported figure.
Ambarella (AMBA - Free Report) has an Earnings ESP of +2.86% and a Zacks Rank #3 at present.
Ambarella is set to report fourth-quarter fiscal 2022 results on Feb 28. The Zacks Consensus Estimate for AMBA’s earnings is pegged at 43 cents per share, which suggests an increase of 207.1% from the prior-year reported figure.
Casey’s General Stores (CASY - Free Report) has an Earnings ESP of +15.39% and a Zacks Rank #3 at present.
Casey’s is scheduled to release third-quarter fiscal 2022 results on Mar 8. The Zacks Consensus Estimate for CASY’s earnings is pegged at $1.43 per share, which suggests an increase of 37.5% from the prior-year reported figure.
Image: Bigstock
ETSY Gears Up to Report Q4 Earnings: What's in the Cards?
Etsy (ETSY - Free Report) is scheduled to report fourth-quarter 2021 results on Feb 24.
For the fourth quarter, the company anticipates total revenues between $660 million and $690 million, suggesting year-over-year growth of 10% at the mid-point.
The Zacks Consensus Estimate for the same is pegged at $686.3 million, indicating an improvement of 11.2% from the prior-year reported number.
Further, the consensus mark for earnings has increased 4.1% in the past 30 days to 76 cents, suggesting a decline of 29.6% from the prior-year quarter.
The company surpassed the Zacks Consensus Estimate in the trailing four quarters, with the average earnings surprise being 34.6%.
Etsy, Inc. Price and EPS Surprise
Etsy, Inc. price-eps-surprise | Etsy, Inc. Quote
Key Factors to Note
Etsy’s fourth-quarter results are likely to reflect the benefits from core business. Its core marketplace is expected to have driven the company’s gross merchandise sales.
Growing efforts toward expanding product offerings for delivering an enhanced customer experience are expected to have contributed well to ETSY’s quarterly performance.
In addition, growing sellers’ unique collection of items and personalized products in the Etsy platform is expected to have driven the buyer base in the fourth quarter. Also, enhancements in search and discovery are expected to have boosted its momentum among buyers.
Strong traction across habitual and repeat buyers is expected to have continued strengthening momentum in frequency in the fourth quarter.
The company has been heavily investing in its app for better customer engagement. This is likely to have contributed well to fourth-quarter revenues.
Rising brand awareness is likely to have benefited ETSY’s performance in the to-be-reported quarter.
ETSY has been working to provide localized experiences in key geographies outside the United States. This is expected to have been a tailwind in the quarter under review.
Further, positive contributions from Reverb, Depop, and Elo7 acquisitions are anticipated to have remained a tailwind in the fourth quarter.
Yet, volatile global macroeconomic conditions owing to the coronavirus pandemic might have affected consumer spending, which is likely to have hurt its quarterly performance.
Further, 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.
It has an Earnings ESP of +7.63% and a Zacks Rank #3, at present.
Other Stocks to Consider
Here are some other stocks that you may also consider as our model shows that these too have the right combination of elements to beat on earnings this season.
DICK’S Sporting Goods (DKS - Free Report) has an Earnings ESP of +4.86% and a Zacks Rank of 2 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
DICK’s is scheduled to release fourth-quarter fiscal 2022 results on Mar 8. The Zacks Consensus Estimate for DKS’ earnings is pegged at $3.39 per share, suggesting an increase of 39.5% from the prior-year reported figure.
Ambarella (AMBA - Free Report) has an Earnings ESP of +2.86% and a Zacks Rank #3 at present.
Ambarella is set to report fourth-quarter fiscal 2022 results on Feb 28. The Zacks Consensus Estimate for AMBA’s earnings is pegged at 43 cents per share, which suggests an increase of 207.1% from the prior-year reported figure.
Casey’s General Stores (CASY - Free Report) has an Earnings ESP of +15.39% and a Zacks Rank #3 at present.
Casey’s is scheduled to release third-quarter fiscal 2022 results on Mar 8. The Zacks Consensus Estimate for CASY’s earnings is pegged at $1.43 per share, which suggests an increase of 37.5% from the prior-year reported figure.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.