58.60 +0.79 (1.37%)
After hours: 7:55PM EST
|Bid||58.26 x 800|
|Ask||58.74 x 800|
|Day's Range||56.42 - 59.81|
|52 Week Range||39.76 - 73.35|
|Beta (5Y Monthly)||0.91|
|PE Ratio (TTM)||76.07|
|Earnings Date||May 05, 2020 - May 10, 2020|
|Forward Dividend & Yield||N/A (N/A)|
|1y Target Est||65.56|
While shares of ETSY rose due to its strong fourth quarter earnings report, the company announced that it will start taking an advertising fee on its sellers’ products. ETSY CEO Josh Silverman joins On The Move to discuss what the latest shift in advertising does for the company as well as the impact of the coronavirus on the business.
Artisanal online marketplace Etsy Inc. is one of Jim Cramer's 10 Stocks for a Stay-at-Home Pandemic. Cramer recently sat down with Josh Silverman, CEO of the company, which beat earnings estimates. In the daily bar chart of ETSY, below, we can see that prices made a low in November and a retest in December before the recent rally phase.
Online marketplace Etsy Inc (NASDAQ: ETSY) reported fourth-quarter results that came in above expectations and was followed up with better-than-expected guidance for 2020. Nomura Instinet analyst Mark Kelley maintains a Buy rating on Etsy's stock with a price target lifted from $61 to $66. Etsy reported "solid" results, highlighted by a 30% year-over-year growth in seasonal gross merchandise sales (GMS), Kelley wrote in a note.
Last year, Etsy (ETSY) went against the overall trend. Following three years of spectacular growth, Etsy stock exited 2019 down by nearly 5%. With the coronavirus playing havoc on markets all over the world right now, it appears Etsy is playing the contrarian again; Back to its old ways, posting exceptional earnings results and beating the market. As of writing, Esty stock is up by 13%, following an exuberant reaction to yesterday’s 4Q results.So, why is everyone so impressed? Etsy’s Revenue in Q4 was up by 35% to $269.9 million, beating the estimate’s $264.9 million. Earnings of $0.25 per share left the analysts' call for $0.16 in the dust. Additionally, Etsy ended the quarter with 46.4 million active buyers, indicating 17.5% year-over-year growth, while also boasting 2.70 million active sellers, an increase of 27.6%. Looking ahead, there was further good news; Etsy estimates FY20 revenue to come in between $1.04 billion to $1.06 billion vs. the Street’s call for $1.02 billion.As the fifth most visited e-commerce website in the US, in contrast to many other fast-growing companies, Etsy is actually turning a profit. Most of the worries last year concentrated on whether the company can sustain the growth, as gross profit margins narrowed and EPS fell in line with expectations, instead of routinely trouncing them, while the previous quarter’s results exhibited the company’s first revenue miss in eight quarters. Last year, though, Etsy laid down the groundwork for further growth with a focus on a better seller experience, improving marketing and a heavy investment in technology. As the latest results can attest to, the strategy is working.Oppenheimer’s Jason Helfstein thinks so, too. The 5-star analyst is among the many impressed with the latest results. In fact, following a closer inspection of the print, Helfstein upgraded his rating on Etsy from Perform to Outperform, with a price target of $64. This conveys his belief that Etsy can add a further 10% to the share price over the next year. (To watch Helfstein’s track record, click here)Helfstein noted, “Etsy smartly pivoted its seller leadgen strategy to an outcome-based model, resetting Etsy Ads to Promoted Listing, to the delight of sellers, which should push take-rates >20% over time and closer to SHOP/AMZN for SMB sellers. In addition, 4Q local sales tax headwinds were lower than expected, driving organic GMV +20% y/y vs. 22% in 3Q. Meanwhile, change to lead-gen (Etsy Ads & OffSite Ads) removes '20E margin pressure. While buyer growth slowed in 4Q on marketing toward existing users, management expects new marketing to drive FY20 buyer growth. Raising our ‘20/21E revenue 1%/3% and EBITDA 4%/8%, respectively. Our price target assumes 4.9x ‘21E revenue, aided by cash generated from positive working capital.”All in all, the Street remains bullish on Etsy’s prospects. 8 Buys, 1 Hold and 1 sell published by the analysts over the last three months coalesce into a Moderate Buy consensus rating. The average price target comes in at $61.73 and implies possible gains in the shape of 8%. (See Etsy stock analysis on TipRanks)
Etsy shares were higher after analysts crafted a largely bullish reaction to its fourth-quarter results. The online marketplace for handmade apparel and accessories also provided strong guidance and introduced its new Offsite Ads service.
(Bloomberg) -- Etsy Inc. reported fourth-quarter gross merchandise sales that beat analyst estimates and gave an optimistic forecast for 2020, signaling the company’s free-shipping initiative has begun to pay off. Shares jumped more than 10% on the news.Gross merchandise sales, or GMS, a key metric for the e-commerce industry, increased 33% to $1.66 billion in the period ended Dec. 31, the Brooklyn, New York-based company said Wednesday in a statement. Revenue jumped 35% to $270 million. Analysts, on average, estimated $1.6 billion in GMS and $264.8 million in revenue, according to data compiled by Bloomberg.For 2020, Etsy projected GMS, or the value of the products flowing through the website, of as much as $6.4 billion, compared with analysts’ projection of $6.04 billion. The company also said revenue would be $1.04 billion to $1.06 billion, which topped Wall Street’s projection of $1.02 billion.“Etsy.com and our sellers had a great holiday season,” Chief Executive Officer Josh Silverman said on a conference call. He said the company’s marketing efforts, including its holiday television campaign, helped drive those sales. Cyber Monday and Tuesday -- the days after the U.S. Thanksgiving holiday weekend --- saw the highest daily levels of gross merchandise sales ever for the company, he said.Net income declined to $31.3 million, or 25 cents a share, from $41.3 million, or 32 cents, in the period a year earlier.Prior to Wednesday’s results, there were doubts over Etsy’s free-shipping initiative for its U.S- based customers, which wasn’t progressing as planned. The company requires all sellers on its platform to offer free shipping for orders of more than $35 to be prioritized in search results. But sellers didn’t pass on 100% of the savings from free-shipping to buyers.Chief Financial Officer Rachel Glaser acknowledged the initiative’s shaky progress. Helping sellers better plan their pricing strategies to not absorb free shipping costs and expanding buyer knowledge about the program will take time, Glaser said on the call.The company also introduced a new advertising service in 2019, where Etsy uses sellers’ ad budgets to promote their brands on Etsy’s website and on Google Ads. It announced an update to the service Wednesday by introducing Offsite Ads, in which Etsy will use its budget to promote sellers’ brands on multiple platforms including Google, Facebook and Instagram. If sellers make a sale through such an ad, they pay a fee of 12-15% of the order value. The fee is capped at $100 per order.Etsy shares jumped to a high of $57.50 in extended trading after the results were released. The stock closed at $50.69 in New York and has declined 26% in the past 12 months.(Updates with CEO comments in the fourth paragraph.)To contact the reporter on this story: Nikitha Sattiraju in New York at email@example.comTo contact the editors responsible for this story: Molly Schuetz at firstname.lastname@example.org, Andrew Pollack, Anne VanderMeyFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
Etsy (ETSY) delivered earnings and revenue surprises of 47.06% and 1.93%, respectively, for the quarter ended December 2019. Do the numbers hold clues to what lies ahead for the stock?
Etsy reported adjusted earnings of 25 cents per share on revenue of $270 million for its fourth quarter. Wall Street expected adjusted earnings of 16 cents a share on sales of $264.9 million.
Etsy Inc (NASDAQ: ETSY ) reported fourth-quarter earnings of 25 cents per share on Wednesday, which beat the analyst consensus estimate of 16 cents by 56.25%. This is a 21.88% decrease over earnings of ...
Etsy Inc. shares were up 13% in after-hours trading Wednesday after the online marketplace reported fourth-quarter earnings that beat Wall Street estimates. Etsy reported net income of $31.3 million, or 25 cents a share, in the quarter, compared with net income of $41.3 million, or 32 cents a share, in the year-ago fourth quarter. Revenue improved 35% to $270 million from $200 million a year ago. Analysts surveyed by FactSet had expected earnings of 16 cents a share on sales of $264.9 million. Etsy shares are down 29.3% over the last 12 months. The broader S&P 500 index has gained 11.6% in the last year.
Etsy, Inc. (NASDAQ: ETSY), which operates two-sided online marketplaces that connect millions of passionate and creative buyers and sellers around the world, today announced financial results for its fourth quarter and full year ended December 31, 2019.
Etsy, Inc. (Nasdaq: ETSY), which operates two-sided online marketplaces that connect millions of passionate and creative buyers and sellers around the world, announced today that it is evolving its advertising offering to help sellers more effectively drive traffic to their listings.
Etsy (NASDAQ: ETSY ) announces its next round of earnings this Wednesday, February 26. Here's Benzinga's look at Etsy's Q4 earnings report. Earnings and Revenue Sell-side analysts expect Etsy's EPS to ...
Investing can be hard but the potential fo an individual stock to pay off big time inspires us. Mistakes are...
Shares of struggling online retail marketplace eBay (NASDAQ:EBAY) have been largely range-bound over the past three years, bouncing between $30 and $40, as the company has struggled to compete in the dynamic e-commerce landscape.But, there's reason to believe that boring eBay stock could surge higher in 2020, thanks to the convergence of a few catalysts.First, revenue growth trends should improve as the company's ad business continues to expand. Core retail trends should also stabilize as the sizable internet sales tax headwind becomes less severe. Second, margin trends should improve, too, as management remains committed to cutting expenses. Third, the company's buyback program will get a big boost from the $3.1 billion sale of StubHub.InvestorPlace - Stock Market News, Stock Advice & Trading TipsNet net, improving revenue growth trends plus improving margin trends plus bigger buybacks, equals supercharged profit growth. At 12.3-times forward earnings, eBay stock is not priced for supercharged profit growth. * 7 Failing Tech Stocks to Disconnect From Now Consequently, the convergence of big growth on a discounted valuation should propel shares meaningfully higher over the coming months. Big(ger) Growth is ComingThe bull thesis on eBay stock heading into 2020 centers around this idea that bigger profit growth is coming in 2020.That is, over the past several years, eBay has struggled to find its way in the crowded, competitive, and dynamic e-commerce landscape. So, while broader e-commerce sales have roared higher, eBay's revenues have struggled to even grow. At the same time, up until last year, eBay's profit margins were under intense pressure. The company's profit growth trends were exceptionally weak.This could all change in 2020. For a few reasons.First, eBay's online garage sale model has staying power because it offers consumers an alternate route to purchasing goods online. Because of its staying power, eBay's core retail growth trends should improve in 2020 once the internet sales tax headwind gets fully lapped. In 2019, U.S. states broadly implemented an internet sales tax which disproportionately hurt small sellers, from whom eBay makes the majority of its money -- by mid-year, eBay will have fully lapped this headwind, so the year-over-year numbers should improve.Even further, eBay's ad business is on fire, and management expects double-digit growth there to persist throughout 2020. Big picture: renewed core retail growth on top of sustained big ad growth should lead to healthy revenue growth for eBay this year.Second, margins will continue to expand meaningfully in 2020 thanks to management's commitment to cost-cutting. Third, the company just sold StubHub for $3.1 billion. Management plans to roll those proceeds into buybacks, and eBay's 2020 share buyback plans have expanded from $1.5 billion, to $4.5 billion.What does stabilizing revenue growth plus expanding margins plus more buybacks equal? Bigger profit growth. eBay Stock is CheapThe attractive thing about eBay stock is that shares aren't priced for bigger profit growth.The forward earnings multiple on this stock is just 12.3. For comparison purposes, the S&P 500 trades at 19x forward earnings, the technology sector trades at 23x forward earnings, and the consumer discretionary sector trades at 24x forward earnings. Also, peer e-retailers like Amazon (NASDAQ:AMZN) and Etsy (NASDAQ:ETSY) trade at 75x and 45x forward earnings multiples, respectively.In other words, eBay stock is dirt cheap.Sure, the cheapness is warranted by weak profit growth trends. But, if those profit growth trends perk up, then eBay stock could fly higher on multiple expansion.That's exactly what will happen in 2020. As bigger profit growth converges on eBay's dirt cheap valuation, the stock's 12.3x forward earnings multiple will meaningfully expand, and power sizable gains in the stock. Bottom LineeBay stock has been a sleeper for a long time. But, shares could wake up in 2020 as stabilizing revenue growth trends, expanding margins, and bigger buybacks fuel sizable profit growth. The combination of sizable profit growth and a dirt cheap valuation should result in the stock having a good year.As of this writing, Luke Lango was long ETSY. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Failing Tech Stocks to Disconnect From Now * 5 Ideal Dividend Stocks for New Investors * 4 Stocks to Buy No Matter Who Wins the 2020 Election The post Why Boring eBay Stock Could Charge Up in 2020 appeared first on InvestorPlace.
Etsy (ETSY) doesn't possess the right combination of the two key ingredients for a likely earnings beat in its upcoming report. Get prepared with the key expectations.