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Etsy (ETSY) to Report Q2 Earnings: What's in the Cards?

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Etsy ETSY is scheduled to report second-quarter 2021 results on Aug 4.

For the second quarter, the company anticipates total revenues between $493 million and $536 million, implying growth of 15-25% from the year-ago reported figure.

The Zacks Consensus Estimate for the same is pegged at $531.5 million, indicating an improvement of 23.9% from the prior-year quarter’s reported number.

The Zacks Consensus Estimate for earnings stands at 59 cents, suggesting a decline of 21.3% from the prior-year reported quarter.

The company surpassed the Zacks Consensus Estimate in all the trailing four quarters, the average earnings surprise being 47.6%.

Etsy, Inc. Price and EPS Surprise

Etsy, Inc. Price and EPS Surprise
Etsy, Inc. Price and EPS Surprise

Etsy, Inc. price-eps-surprise | Etsy, Inc. Quote

Key Factors to Note

Etsy is likely to have benefited from its core business and continued momentum in frequency in the to-be-reported quarter.

Growing efforts toward enhancing product offerings for delivering enhanced customer experience are expected to have contributed to the quarterly performance as well.

The company has been heavily investing in its app for better customer engagement. This is likely to have aided the second-quarter top line.

Strengthening endeavors toward advancement of its marketplace platform for both buyers and sellers are anticipated to get reflected in the upcoming quarterly results.

Further, the company’s efforts to deliver a connected experience across all devices and to enable seamless human interaction are likely to have bolstered customer engagement on the platform in the second quarter.

Integration with Etsy Payment to facilitate seamless online payment transactions for orders and free shipment services might have strengthened buyer base on the Marketplace platform in the to-be-reported quarter.

Growing sellers’ unique collection of items and personalized products in the Etsy platform is expected to have driven the buyer base in the quarter under review. Also, enhancements in search and discovery are expected have boosted its momentum among buyers.

Growing momentum across the Reverb marketplace is anticipated to have been a tailwind.

Rising brand awareness and product advertisements are likely to get reflected in the to-be-reported quarter’s performance.

However, the volatile global macroeconomic condition might have affected consumer spending, which is likely to have hurt second-quarter performance. The company’s negative outlook toward declining new buyers is expected to get reflected in the upcoming quarterly results.

What Our Model Says

Our proven model predicts 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. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

It has an Earnings ESP of +12.95% and a Zacks Rank #3, at present.

Other Stocks to Consider

Here are some other stocks that you may consider as our model shows that these too have the right combination of elements to beat on earnings this season.

Agilent Technologies A has an Earnings ESP of +1.49% and a Zacks Rank of 2, at present.

Avnet AVT has an Earnings ESP of +9.82% and a Zacks Rank of 1, at present.

CyberArk Software CYBR has an Earnings ESP of +37.93% and a Zacks Rank of 2, at present. You can see the complete list of today’s Zacks #1 Rank stocks here.


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Avnet, Inc. (AVT) : Free Stock Analysis Report

Agilent Technologies, Inc. (A) : Free Stock Analysis Report

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

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