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For the second quarter of 2023, Etsy anticipates total revenues between $590 million and $640 million. The Zacks Consensus Estimate for the same is pegged at $621.87 million, indicating an improvement of 6.3% from the prior-year quarter’s reported figure.
The consensus mark for earnings is pegged at 41 cents, suggesting a decline of 19.6% from the prior-year quarter’s actuals. This figure has remained unchanged 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 26.7%, on average.
Growing momentum in Etsy purchase protection services, which enable customers to feel more confident about their purchases, is likely to have contributed well to the top line during the second quarter.
Further, solid trends in apparel and personalized pop-culture-related items are expected to have been a tailwind for Etsy’s marketplace platform. Also, the company’s continuous efforts to increase brand awareness are likely to get reflected in the to-be-reported quarter’s results.
Additionally, Etsy’s go-to-market strategy, recommendation features, better shipping options, conversion rate optimization, and online search and checkout process optimization are likely to have been beneficial.
This apart, the increasing retention of active buyers, as well as the reactivation of lapsed buyers, is likely to have aided ETSY’s performance in the to-be-reported quarter. The Zacks Consensus Estimate for active buyers stands at 95.5 million, indicating growth of 1.6% year over year.
Also, growing investments to enhance seller suites, including education tools and personalized seller insights, are expected to have bolstered the seller base of the company during the second quarter. The Zacks Consensus Estimate for active sellers stands at 8.3 million, indicating growth of 11.7% from the year-ago reported figure.
However, a shift in consumer preferences from goods to services and weakness in large product categories like home, living and craft supplies, are expected to have been concerns and are likely to have hurt the gross merchandise sales (GMS).
The consensus mark for GMS is pegged at $2.99 billion, indicating a decline of 1.3% from the reported figure in the prior-year quarter.
Moreover, rising inflationary pressure, coupled with sluggish consumer discretionary spending, particularly in lower-income households, is likely to have been a headwind for the company.
Also, increasing government regulations and strict scrutinization in the e-commerce industry are expected to have acted as headwinds.
What Our Model Says
Our proven model predicts a likely 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 +2.82% and a Zacks Rank #3 at present.
Other Stocks to Consider
Here are some other stocks worth considering as our model shows that these too have the right combination of elements to beat on earnings this season.
Itron is scheduled to release second-quarter 2023 results on Aug 3. The Zacks Consensus Estimate for ITRI’s earnings is pegged at 31 cents per share, suggesting a jump from the prior-year quarter’s reported figure of 7 cents.
Docebo (DCBO - Free Report) has an Earnings ESP of +6.67% and has a Zacks Rank #2 at present.
Docebo is set to report its second-quarter fiscal 2023 results on Aug 10. The Zacks Consensus Estimate for DCBO’s earnings is pegged at 8 cents per share. The company reported a loss of 5 cents per share in the year-ago quarter.
CACI International (CACI - Free Report) has an Earnings ESP of +2.36% and a Zacks Rank #2.
CACI is set to report its fourth-quarter fiscal 2023 results on Aug 9. The Zacks Consensus Estimate for CACI’s earnings is pegged at $4.85 per share, suggesting growth of 6.8% from the prior-year quarter’s reported figure.
Image: Bigstock
ETSY Gears Up to Report Q2 Earnings: What's in the Cards?
Etsy (ETSY - Free Report) is scheduled to report its second-quarter 2023 results on Aug 2.
For the second quarter of 2023, Etsy anticipates total revenues between $590 million and $640 million. The Zacks Consensus Estimate for the same is pegged at $621.87 million, indicating an improvement of 6.3% from the prior-year quarter’s reported figure.
The consensus mark for earnings is pegged at 41 cents, suggesting a decline of 19.6% from the prior-year quarter’s actuals. This figure has remained unchanged 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 26.7%, on average.
Etsy, Inc. Price and EPS Surprise
Etsy, Inc. price-eps-surprise | Etsy, Inc. Quote
Key Factors to Note
Growing momentum in Etsy purchase protection services, which enable customers to feel more confident about their purchases, is likely to have contributed well to the top line during the second quarter.
Further, solid trends in apparel and personalized pop-culture-related items are expected to have been a tailwind for Etsy’s marketplace platform. Also, the company’s continuous efforts to increase brand awareness are likely to get reflected in the to-be-reported quarter’s results.
Additionally, Etsy’s go-to-market strategy, recommendation features, better shipping options, conversion rate optimization, and online search and checkout process optimization are likely to have been beneficial.
This apart, the increasing retention of active buyers, as well as the reactivation of lapsed buyers, is likely to have aided ETSY’s performance in the to-be-reported quarter. The Zacks Consensus Estimate for active buyers stands at 95.5 million, indicating growth of 1.6% year over year.
Also, growing investments to enhance seller suites, including education tools and personalized seller insights, are expected to have bolstered the seller base of the company during the second quarter. The Zacks Consensus Estimate for active sellers stands at 8.3 million, indicating growth of 11.7% from the year-ago reported figure.
However, a shift in consumer preferences from goods to services and weakness in large product categories like home, living and craft supplies, are expected to have been concerns and are likely to have hurt the gross merchandise sales (GMS).
The consensus mark for GMS is pegged at $2.99 billion, indicating a decline of 1.3% from the reported figure in the prior-year quarter.
Moreover, rising inflationary pressure, coupled with sluggish consumer discretionary spending, particularly in lower-income households, is likely to have been a headwind for the company.
Also, increasing government regulations and strict scrutinization in the e-commerce industry are expected to have acted as headwinds.
What Our Model Says
Our proven model predicts a likely 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 +2.82% and a Zacks Rank #3 at present.
Other Stocks to Consider
Here are some other stocks worth considering as our model shows that these too have the right combination of elements to beat on earnings this season.
Itron (ITRI - Free Report) has an Earnings ESP of +13.78% and sports a Zacks Rank of 1, at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Itron is scheduled to release second-quarter 2023 results on Aug 3. The Zacks Consensus Estimate for ITRI’s earnings is pegged at 31 cents per share, suggesting a jump from the prior-year quarter’s reported figure of 7 cents.
Docebo (DCBO - Free Report) has an Earnings ESP of +6.67% and has a Zacks Rank #2 at present.
Docebo is set to report its second-quarter fiscal 2023 results on Aug 10. The Zacks Consensus Estimate for DCBO’s earnings is pegged at 8 cents per share. The company reported a loss of 5 cents per share in the year-ago quarter.
CACI International (CACI - Free Report) has an Earnings ESP of +2.36% and a Zacks Rank #2.
CACI is set to report its fourth-quarter fiscal 2023 results on Aug 9. The Zacks Consensus Estimate for CACI’s earnings is pegged at $4.85 per share, suggesting growth of 6.8% from the prior-year quarter’s reported figure.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.