Yahoo Finance ETSY Gears Up to Report Q1 Earnings: What's in the Cards?
Etsy ETSY is scheduled to report its first-quarter 2024 results on May 1.
For the first quarter of 2024, the Zacks Consensus Estimate for revenues is pegged at $648.32 million, indicating an improvement of 1.2% from the prior-year quarter’s reported figure.
The consensus mark for earnings is pegged at 49 cents per share, suggesting a decline of 7.6% from the prior-year quarter’s actuals. This figure has remained unchanged over the past 30 days.
Etsy’s earnings beat the Zacks Consensus Estimate in three of the trailing four quarters but remained in line with the same on the other occasion, the earnings surprise being 35.87%, on average.
Etsy, Inc. Price and EPS Surprise
Etsy, Inc. price-eps-surprise | Etsy, Inc. Quote
Key Factors to Note
Etsy’s first-quarter 2024 results are expected to have benefited from solid momentum across active sellers, driven by increased visibility for seller-funded promotions and growing investments to provide tools and insights for sustainable pricing strategies for sellers.
The Zacks Consensus Estimate for active sellers stands at 9.3 million, indicating growth of 17.2% from the year-ago reported figure.
The company’s growing efforts to enhance the shopping experience for buyers by improving reviews and recommendations, developing new category purchase pathways and experiences, designing new tools for buyer engagement, and featuring handcrafted high-quality listings at great value are likely to have driven the active buyer base in the quarter under review.
The Zacks Consensus Estimate for active buyers stands at 96.6 million, indicating growth of 1.1% year over year.
Strong momentum in Etsy ads is expected to have boosted Etsy Services revenues during the to-be-reported quarter.
The consensus estimate indicates Services revenues to grow 3.5% year over year to $179.39 million.
Strength in the company’s Reverb and Depop businesses, owing to its robust product and marketing strategies, is likely to have acted as a tailwind.
However, softness in consumer discretionary product spending due to macroeconomic uncertainties and ongoing geopolitical conflicts is expected to have negatively impacted gross merchandise sales (GMS) during the first quarter.
The consensus mark for GMS is pegged at $3.05 billion, indicating a decline of 1.8% from the reported figure in the prior-year quarter.
Sluggishness in the Home & Living category and a highly competitive retail environment are likely to have been headwinds for the company.
What Our Model Says
According to the Zacks model, 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.
Etsy has an Earnings ESP of -7.48% and a Zacks Rank #3 at present. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks to Consider
Here are some stocks worth considering, as our model shows that they have the right combination of elements to beat on earnings this season.
APi Group APG has an Earnings ESP of +2.06% and a Zacks Rank #1 at present. You can see the complete list of today's Zacks #1 Rank stocks here.
APi Group is scheduled to release first-quarter 2024 results on May 2. The Zacks Consensus Estimate for APG’s earnings is pegged at 32 cents per share, indicating growth of 28% from the year-ago quarter’s reported figure.
eBay EBAY has an Earnings ESP of +0.18% and a Zacks Rank #1 at present.
eBay is set to announce first-quarter 2024 results on May 1. The Zacks Consensus Estimate for EBAY’s earnings is pinned at $1.20 per share, indicating growth of 8.1% from the year-ago quarter’s reported figure.
Cardinal Health CAH has an Earnings ESP of +1.11% and a Zacks Rank #3 at present.
CAH is scheduled to release third-quarter fiscal 2024 results on May 2. The Zacks Consensus Estimate for CAH’s earnings is pegged at $1.95 per share, indicating growth of 12.1% from the year-ago quarter’s reported figure.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
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