Wayfair (W) to Report Q4 Earnings: What's in the Cards?
Wayfair W is set to report fourth-quarter 2023 results on Feb 22.
For fourth-quarter 2023, Wayfair expects revenue growth to remain within flat to positive low single-digit range. The Zacks Consensus Estimate for the same is currently pegged at $3.10 billion, indicating year-over-year growth of 0.1%.
Further, the consensus mark for the bottom line is pegged at a loss of 23 cents per share, which compares favorably with the year-ago reported loss of $1.71 per share. The figure has increased by a penny in the past seven days.
Wayfair beat the Zacks Consensus Estimate in three of the trailing four quarters while missing the same once, delivering an earnings surprise of 57.6%, on average.
Wayfair Inc. Price and EPS Surprise
Wayfair Inc. price-eps-surprise | Wayfair Inc. Quote
Factors to Consider
Wayfair’s fourth-quarter 2023 results are expected to have benefited from solid momentum in orders, owing to lower costs and increasing customer and supplier loyalties.
The Zacks Consensus Estimate for the number of orders delivered stands at 11.6 million, indicating growth of 6.1% year over year.
Solid momentum across existing customers who repeat orders on the platform is expected to have boosted the company’s revenues during the to-be-reported quarter.
The consensus estimate for orders from repeat customers is pegged at 8.99 million units, indicating growth of 5.8% year over year.
Growing investments to enhance customer experience are likely to have driven Wayfair’s momentum among active customers during the fourth quarter.
The Zacks Consensus Estimate for active customers stands at 22.5 million, indicating growth of 2.3% from the year-ago reported figure.
Strengthening supplier advertising solutions is likely to have acted as a tailwind for the company in the quarter under review.
Strong momentum across specialty and luxury brands on the back of growing merchandising efforts is expected to have driven top-line growth during the quarter under review.
However, a weakening home goods market is expected to have negatively impacted top-line growth during the fourth quarter.
Macroeconomic uncertainties and rising inflationary pressures are likely to have been headwinds for the company during the quarter under review.
What Our Model Says
Our proven model predicts a likely earnings beat for Wayfair 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 +4.91% and a Zacks Rank #2 at present.
Other Stocks to Consider
Here are some other companies worth considering from the same space, as our model shows that these, too, have the right combination of elements to beat on earnings in their soon-to-be-reported quarterly results.
The Gap GPS has an Earnings ESP of +24.44% and a Zacks Rank #1 at present. You can see the complete list of today's Zacks #1 Rank stocks here.
The Gap is set to announce fourth-quarter 2023 results on Mar 7. The Zacks Consensus Estimate for GPS’ earnings is pinned at 19 cents per share, indicating growth from the year-ago quarter’s loss of 75 cents per share.
Eldorado Gold EGO has an Earnings ESP of +5.88% and a Zacks Rank #2 at present.
Eldorado Gold is set to announce fourth-quarter 2023 results on Feb 22. The Zacks Consensus Estimate for EGO’s earnings is pinned at 21 cents per share, indicating growth of 50% from the year-ago quarter’s reported figure.
Booking Holdings BKNG has an Earnings ESP of +2.07% and a Zacks Rank #3 at present.
Booking Holdings is scheduled to release fourth-quarter 2023 results on Feb 22. The Zacks Consensus Estimate for BKNG’s earnings is pegged at $29.69 per share, suggesting a jump of 20% from the prior-year quarter.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
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The Gap, Inc. (GPS) : Free Stock Analysis Report
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Booking Holdings Inc. (BKNG) : Free Stock Analysis Report
