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ETSY Gears Up for Q3 Earnings: What's in Store for the Stock?
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Etsy (ETSY - Free Report) is scheduled to report third-quarter 2022 results on Nov 2.
For the third quarter of 2022, Etsy anticipates total revenues between $540 million and $575 million. The Zacks Consensus Estimate for the same is pegged at $560.2 million, indicating an improvement of 5.2% from the prior-year quarter’s reported figure.
The consensus mark for earnings, which has been unchanged over the past 30 days, is pegged at 37 cents, suggesting a decline of 40.3% from the prior-year quarter’s actuals.
Etsy’s earnings surpassed the Zacks Consensus Estimate in all the trailing four quarters, the average being 29.4%.
Etsy’s third-quarter performance is likely to have benefited from growing momentum across buyers and sellers.
The Zacks Consensus Estimates for active buyers and sellers is pegged at 94.3 million and 7.6 million, respectively, each increasing 0.3% and 3.3% from the corresponding prior-quarter figures.
Growth in sellers’ unique collection of handicraft items and personalized products on the Etsy platform is expected to have continued driving the buyer base in the underlined quarter.
ETSY is consistently working toward expanding its product offerings to deliver an enhanced customer experience. This is expected to have contributed well to its top-line growth in the quarter under review.
During the quarter, Etsy introduced the Etsy Purchase Protection Program to make selling and shopping on its platform more reliable and easier. This is likely to have helped it attract more buyers and sellers.
Strong efforts to improve the quality of search and the information given on the search result page might have accelerated the conversion rate and average order value in the third quarter.
Expanding global footprint of Etsy Payments, and strong momentum across Etsy Ads and Offsite Ads is likely to have remained other positives in the quarter under discussion.
Rising investment in core Etsy and subsidiaries, such as Reverb, Depop and Elo7, is anticipated to get reflected in the to-be-reported results.
Etsy’s go-to-market strategy, recommendation features, better shipping options and an expanding app usage are likely to have remained tailwinds.
However, the impact of global supply-chain constraints, sluggish consumer discretionary spending and growing geopolitical tensions might get reflected in the upcoming quarterly results.
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 does not 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, which is not the case here, as elaborated below. 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 0.00% and a Zacks Rank #4 (Sell) at present.
Stocks to Consider
Here are some stocks worth considering, as our model shows that these have the right combination of elements to beat on earnings this season.
Baidu is set to report third-quarter 2022 results on Nov 16. The Zacks Consensus Estimate for BIDU’s earnings is pegged at $2.44 per share, suggesting an increase of 7.02% from the prior-year period’s reported figure.
The Trade Desk (TTD - Free Report) has an Earnings ESP of +2.13% and a Zacks Rank of 2 at present.
The Trade Desk is scheduled to release third-quarter 2022 results on Nov 9. The Zacks Consensus Estimate for TTD’s earnings is pegged at 24 cents per share, suggesting an increase of 33.3% from the prior-year quarter’s reported figure.
Tencent Music Entertainment Group (TME - Free Report) has an Earnings ESP of +4.76% and a Zacks Rank of 2 at present.
Tencent Music is scheduled to release third-quarter 2022 results on Nov 15. The Zacks Consensus Estimate for TME’s earnings is pegged at 11 cents per share, suggesting an increase of 22.2% from the prior-year quarter’s reported figure.
Image: Bigstock
ETSY Gears Up for Q3 Earnings: What's in Store for the Stock?
Etsy (ETSY - Free Report) is scheduled to report third-quarter 2022 results on Nov 2.
For the third quarter of 2022, Etsy anticipates total revenues between $540 million and $575 million. The Zacks Consensus Estimate for the same is pegged at $560.2 million, indicating an improvement of 5.2% from the prior-year quarter’s reported figure.
The consensus mark for earnings, which has been unchanged over the past 30 days, is pegged at 37 cents, suggesting a decline of 40.3% from the prior-year quarter’s actuals.
Etsy’s earnings surpassed the Zacks Consensus Estimate in all the trailing four quarters, the average being 29.4%.
Etsy, Inc. Price and EPS Surprise
Etsy, Inc. price-eps-surprise | Etsy, Inc. Quote
Key Factors to Note
Etsy’s third-quarter performance is likely to have benefited from growing momentum across buyers and sellers.
The Zacks Consensus Estimates for active buyers and sellers is pegged at 94.3 million and 7.6 million, respectively, each increasing 0.3% and 3.3% from the corresponding prior-quarter figures.
Growth in sellers’ unique collection of handicraft items and personalized products on the Etsy platform is expected to have continued driving the buyer base in the underlined quarter.
ETSY is consistently working toward expanding its product offerings to deliver an enhanced customer experience. This is expected to have contributed well to its top-line growth in the quarter under review.
During the quarter, Etsy introduced the Etsy Purchase Protection Program to make selling and shopping on its platform more reliable and easier. This is likely to have helped it attract more buyers and sellers.
Strong efforts to improve the quality of search and the information given on the search result page might have accelerated the conversion rate and average order value in the third quarter.
Expanding global footprint of Etsy Payments, and strong momentum across Etsy Ads and Offsite Ads is likely to have remained other positives in the quarter under discussion.
Rising investment in core Etsy and subsidiaries, such as Reverb, Depop and Elo7, is anticipated to get reflected in the to-be-reported results.
Etsy’s go-to-market strategy, recommendation features, better shipping options and an expanding app usage are likely to have remained tailwinds.
However, the impact of global supply-chain constraints, sluggish consumer discretionary spending and growing geopolitical tensions might get reflected in the upcoming quarterly results.
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 does not 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, which is not the case here, as elaborated below. 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 0.00% and a Zacks Rank #4 (Sell) at present.
Stocks to Consider
Here are some stocks worth considering, as our model shows that these have the right combination of elements to beat on earnings this season.
Baidu (BIDU - Free Report) has an Earnings ESP of +0.82% and a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Baidu is set to report third-quarter 2022 results on Nov 16. The Zacks Consensus Estimate for BIDU’s earnings is pegged at $2.44 per share, suggesting an increase of 7.02% from the prior-year period’s reported figure.
The Trade Desk (TTD - Free Report) has an Earnings ESP of +2.13% and a Zacks Rank of 2 at present.
The Trade Desk is scheduled to release third-quarter 2022 results on Nov 9. The Zacks Consensus Estimate for TTD’s earnings is pegged at 24 cents per share, suggesting an increase of 33.3% from the prior-year quarter’s reported figure.
Tencent Music Entertainment Group (TME - Free Report) has an Earnings ESP of +4.76% and a Zacks Rank of 2 at present.
Tencent Music is scheduled to release third-quarter 2022 results on Nov 15. The Zacks Consensus Estimate for TME’s earnings is pegged at 11 cents per share, suggesting an increase of 22.2% from the prior-year quarter’s reported figure.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.