Etsy ETSY is scheduled to report its second-quarter 2024 results on Jul 31.
For the second quarter of 2024, the Zacks Consensus Estimate for revenues is pegged at $632.20 million, indicating a 0.5% improvement from the year-ago quarter’s reported figure.
The consensus mark for earnings is pegged at 46 cents per share, suggesting a decline of 44.6% from the prior-year quarter’s actuals. This figure has moved downward by 2.1% over the past 30 days.
Let’s see how things might have shaped up for this announcement.
Etsy, Inc. Price and EPS Surprise
Etsy, Inc. price-eps-surprise | Etsy, Inc. Quote
Key Factors to Note
Etsy’s second-quarter 2024 results are expected to have benefited from solid momentum across active sellers, driven by its continuing efforts to support sellers with new tools and insights, such as a Growth Page with customer insights to help sellers grow their businesses and a new earnings calculator to assist sellers in understanding various inputs that go into their profitability.
The Zacks Consensus Estimate for active sellers stands at 9.6 million, indicating growth of 15.9% from the year-ago reported figure.
Increasing marketing campaigns, including the launch of Gift Mode, to raise awareness of Etsy as a key gifting destination is expected to have driven the active buyer base in the quarter under review.
The Zacks Consensus Estimate for active buyers stands at 97.2 million, indicating growth of 1% year over year.
The company’s growing efforts to increase app penetration by expanding the reach and effectiveness of its push messages and improving the experience for first-time app users are likely to have acted as a tailwind.
Strength in the company’s Reverb and Depop businesses, owing to its robust product and marketing strategies, is likely to have positively impacted its top line during the to-be-reported quarter.
However, softness in consumer discretionary product spending due to macroeconomic headwinds is expected to have negatively impacted gross merchandise sales (GMS) during the second quarter.
The consensus mark for GMS is pegged at $2.9 billion, indicating a decline of 3.4% from the reported figure in the prior-year quarter.
Weakening demand across top markets like the U.K. and Germany are expected to have been other headwinds for the company.
Sluggishness in large product categories like home, living, apparel and craft supplies may have been a concern.
What Our Model Says
According to the Zacks model, 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. But that’s not the case here.
Etsy has an Earnings ESP of -4.81% and a Zacks Rank #3 at present. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks to Consider
Here are some stocks worth considering, as our model shows that they have the right combination of elements to beat on earnings this season.
Aspen Aerogels ASPN has an Earnings ESP of +23.53% and sports a Zacks Rank #1 at present. You can see the complete list of today's Zacks #1 Rank stocks here.
Aspen Aerogels is set to report its second-quarter 2024 results on Aug 7. The Zacks Consensus Estimate for ASPN’s earnings is pegged at 5 cents per share, indicating a significant jump from the prior-year quarter’s loss of 22 cents per share.
Apple AAPL has an Earnings ESP of +3.05% and a Zacks Rank #2 at present.
Apple is scheduled to release third-quarter fiscal 2024 results on Aug 1. The Zacks Consensus Estimate for AAPL’s earnings is pegged at $1.33 per share, suggesting a jump of 5.6% from the prior-year quarter.
GoDaddy GDDY has an Earnings ESP of +13.08% and a Zacks Rank #3 at present.
GoDaddy is set to report second-quarter 2024 results on Aug 1. The Zacks Consensus Estimate for GDDY’s earnings is pegged at $1.07 per share, indicating growth of 69.8% from the year-ago quarter’s reported figure.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
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