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ETSY Gears Up for Q2 Earnings: What's in Store for the Stock?

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·4 min read
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Etsy ETSY is scheduled to report second-quarter 2022 results on Jul 27.

For the second quarter of 2022, Etsy anticipates total revenues between $540 million and $590 million. The Zacks Consensus Estimate for the same is pegged at $560.95 million, indicating an improvement of 6.1% from the prior-year quarter’s reported figure.

The consensus mark for earnings, which has been unchanged for the past 30 days, is pegged at 31 cents, suggesting a decline of 54.4% from the prior-year quarter’s actuals.

Etsy’s earnings surpassed the Zacks Consensus Estimate in all the trailing four quarters, the average being 21.8%.

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’s second-quarter performance is likely to have benefited from its core business. ETSY’s core marketplace might have driven its gross merchandise sales.

ETSY is consistently working toward expanding its product offerings to deliver an enhanced customer experience. This is expected to have contributed well to its top-line growth in the quarter under review.

Etsy has a strong active buyer base in the United States and the U.K. This is likely to have continued supporting the soon to-be-reported quarter’s performance.

Increasing investments in marketing to acquire buyers and retain the existing ones are anticipated to have remained tailwinds.

Growth in sellers’ unique collection of handicraft items and personalized products on the Etsy platform is expected to have continued driving the buyer base in the underlined quarter.

Rising investment in core Etsy and subsidiaries, such as Reverb, Depop and Elo7 are anticipated to get reflected in the to-be-reported results.

Expanding global footprint of Etsy Payments, and strong momentum across Etsy Ads and Offsite Ads is likely to have remained other positives in the quarter under discussion.

Etsy’s go-to-market strategy, recommendation features, better shipping options, conversion rate optimization, online search and checkout process optimization, and expanding app usage are likely to have remained tailwinds.

However, volatile global macroeconomic conditions due to the coronavirus pandemic and the ongoing Ukraine-Russia war might have continued affecting consumer spending. This is expected to have remained a headwind for Etsy and its subsidiaries Depop and Reverb.

Also, the impact of global supply chain and logistics challenges might get reflected in the upcoming quarterly results.

Intensifying competition in the e-commerce market is expected to have remained a concern for Etsy’s market position in the to-be-reported quarter.

What Our Model Says

Our proven model does not predict 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, which is not the case in here. 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 +3.28% and a Zacks Rank #4 (Sell) at present.

Stocks to Consider

Here are some stocks worth considering, as our model shows that these have the right combination of elements to beat on earnings this season.

Aspen Technology AZPN has an Earnings ESP of +1.40% and a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Aspen Technology is set to report fourth-quarter fiscal 2022 results on Aug 8. The Zacks Consensus Estimate for ASPN’s earnings is pegged at $2.15 per share, which suggests an increase of 40.5% from the prior-year fiscal period’s reported figure.

Keysight Technologies KEYS has an Earnings ESP of +1.23% and a Zacks Rank of 2 at present.

Keysight Technologies is scheduled to release third-quarter fiscal 2022 results on Aug 17. The Zacks Consensus Estimate for KEYS’ earnings is pegged at $1.79 per share, suggesting an increase of 16.2% from the prior-year fiscal quarter’s reported figure.

Advanced Micro Devices AMD has an Earnings ESP of +2.14% and a Zacks Rank of 3 at present.

Advanced Micro Devices is scheduled to release second-quarter 2022 results on Aug 2. The Zacks Consensus Estimate for AMD’s earnings is pegged at $1.03 per share, suggesting an increase of 63.5% from the prior-year quarter’s reported figure.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.


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