Yahoo Finance 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.
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.
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.
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.
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.
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.
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.
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.
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).
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Amazon.com, Inc. (AMZN) : Free Stock Analysis Report
Overstock.com, Inc. (OSTK) : Free Stock Analysis Report
Etsy, Inc. (ETSY) : Free Stock Analysis Report
