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Previewing Etsy and Overstock Before Q4 Earnings

We continue to chug along in earnings season, with various companies reporting quarterly results daily.

The so-called earnings apocalypse has yet to show its face, with many companies posting better-than-expected results.

Now, Etsy ETSY and Overstock OSTK are gearing up to unveil their quarterly results next week.

Both companies are slated to release their results on February 22nd, but Etsy will report after the market close, whereas Overstock will report before the open.

How do the companies stack up heading into their releases? We can use e-commerce results from Amazon AMZN as a small gauge. Let’s take a closer look.

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Amazon Q4 

Amazon posted better-than-expected earnings results, exceeding the Zacks Consensus EPS Estimate by 40%.

Quarterly revenue totaled $149.2 billion, nearly 3% above our consensus estimate and growing roughly 8.5% year-over-year. Below is a chart illustrating AMZN’s revenue on a quarterly basis.

Zacks Investment Research
Zacks Investment Research


Image Source: Zacks Investment Research

However, we can look at the company’s net sales results from its Online Stores to help guide us lightly for Etsy’s and Overstock’s upcoming releases.

AMZN’s Online Stores net sales tallied $64.5 billion throughout the quarter, just marginally falling short of the Zacks Consensus Estimate and slipping roughly 2.4% year-over-year.

As we can see in the chart below, the company has regularly fallen short of estimates within this metric.

Zacks Investment Research
Zacks Investment Research


Image Source: Zacks Investment Research

Etsy

Analysts have primarily been primarily bullish for ETSY’s quarter to be reported, with two upward earnings estimate revisions hitting the tape over the last 60 days. The Zacks Consensus EPS Estimate of $0.82 suggests a 26% year-over-year pullback in earnings.

Zacks Investment Research
Zacks Investment Research


Image Source: Zacks Investment Research

In addition, our consensus revenue estimate stands at $754 million, indicating an improvement of more than 5% year-over-year.

Zacks Investment Research
Zacks Investment Research


Image Source: Zacks Investment Research

The company’s Marketplace Revenue results will be watched closely; for the quarter, the Zacks Consensus Estimate for Marketplace Revenue stands at $569 million, implying a positive change of roughly 5% year-over-year.

As we can see in the chart below, Etsy has regularly exceeded estimates within this metric.

Zacks Investment Research
Zacks Investment Research


Image Source: Zacks Investment Research

And to top it off, Etsy posted impressive quarterly results in its latest release, exceeding earnings estimates by more than 55% and reporting revenue 6% ahead of expectations.

Overstock

Analysts have taken a bearish stance on OSTK’s upcoming release, with two negative earnings estimate revisions coming in over the last several months. The Zacks Consensus EPS Estimate of $0.03 implies a decline of 90% year-over-year within earnings.

Zacks Investment Research
Zacks Investment Research


Image Source: Zacks Investment Research

In addition, our consensus sales estimate stands at $466.6 million, indicating a pullback of 24% from year-ago quarterly sales of $612.7 million.

Zacks Investment Research
Zacks Investment Research


Image Source: Zacks Investment Research

Overstock posted primarily mixed results in its latest release, falling short of sales expectations by 6% but exceeding the Zacks Consensus EPS Estimate by 8.3%.

Putting Everything Together

Earnings season is the most critical period for stocks, with companies finally providing an update on the business state.

Next week, we’ll receive results from Etsy ETSY and Overstock OSTK. We already received results from a peer, Amazon AMZN, with the company falling short of estimates for Online Net Sales.

Heading into their releases, Etsy is currently a Zacks Rank #3 (Hold), and Overstock is a Zacks Rank #4 (Sell).

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Amazon.com, Inc. (AMZN) : Free Stock Analysis Report

Overstock.com, Inc. (OSTK) : Free Stock Analysis Report

Etsy, Inc. (ETSY) : Free Stock Analysis Report

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Zacks Investment Research