If you're looking to invest in a niche e-commerce stock, Etsy is hard to ignore.
The web platform Etsy is famous for selling cutesy handmade arts and crafts, but even a company that relies on a cottage industry of artisans is increasingly undergirded by artificial intelligence, its CEO told AFP on Tuesday.
Etsy's stock has declined over 22% in the past year due to changing consumer behavior and increased competition from Amazon and Shopify. Despite challenges, Etsy's focus on specialized platforms like Depop and Reverb shows potential for growth in sustainable and niche markets. Financials reveal mixed performance, but Q3 2024 results indicate stability with a slight revenue increase and strong cost control.
When investors think of how they will eventually get their returns from a stock investment, they typically relate to the classic “Buy low, sell high” strategy. Another common way of looking at this is through dividend payouts, as the quarterly (sometimes monthly) income gives shareholders a sense of comfort and achievement.
ETSY Q3 earnings decline y/y. Stock gains despite a weak guidance.
Etsy, Inc. (NASDAQ:ETSY ) Q3 2024 Earnings Conference Call October 30, 2024 5:00 PM ET Company Participants Deb Wasser - Vice President of Investor Relations Josh Silverman - Chief Executive Officer Rachel Glaser - Chief Financial Officer Conference Call Participants Nick Jones - JMP Securities Anna Andreeva - Piper Sandler Scott Devitt - Wedbush Securities Nikhil Devnani - Bernstein Maria Ripps - Canaccord Genuity Robert Coolbrith - Evercore ISI Marvin Fong - BTIG Brian Kraska - Wolfe Research Deb Wasser Hi, everyone, and welcome to Etsy's Third Quarter 2024 Earnings Conference Call. I'm Deb Wasser, VP of Investor Relations.
Although the revenue and EPS for Etsy (ETSY) give a sense of how its business performed in the quarter ended September 2024, it might be worth considering how some key metrics compare with Wall Street estimates and the year-ago numbers.
Etsy (ETSY) came out with quarterly earnings of $0.45 per share, missing the Zacks Consensus Estimate of $0.54 per share. This compares to earnings of $0.64 per share a year ago.
Etsy beat third-quarter gross merchandise sales (GMS) and revenue estimates on Wednesday, helped by steady demand from new and habitual buyers for handcrafted antiques and customized jewelry and clothing at its online marketplace.
Besides Wall Street's top -and-bottom-line estimates for Etsy (ETSY), review projections for some of its key metrics to gain a deeper understanding of how the company might have fared during the quarter ended September 2024.
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.
Etsy thrived during the pandemic as consumers flocked to online shopping, but as economic conditions worsened, shares plummeted over 80% from their peak. Despite the stock's decline to 2018 levels, Etsy's revenues have increased 4.5x, margins have expanded, and earnings have quadrupled. Management is implementing strategies like a loyalty program and "Gift Mode" to increase customer engagement and drive gross merchandise sales.