Wayfair Inc. (NYSE:W) is scheduled to report Q3 earnings results before markets open for trading on November 3, 2020.
The company is expected to report earnings of $0.83/share on revenue of $3.656 billion. The consensus earnings per share (EPS) of $0.83/share is based on a poll of 31 analysts and represents a growth in eps of 137.2% over the same quarter last year, when the company reported earnings of -$2.23/share.
The revenue forecast of $3.656 billion based on a poll of 28 analysts implies a year-over-year (YoY) growth in revenue of 58.6%. Last year the company reported $2.305 billion in revenue for the quarter.
|Metric||Expected||Prior Year||YoY Change|
Earnings Call Trends
Historically, management has exceeded analyst expectations 4 out of the last 8 tracked quarters, and missed expectations 4 quarters.
What are your expectations from Wayfair Inc. for earnings this quarter? Let us know in the comments!
In the following table, we summarize the company’s stock price movements after earnings releases. The “Price Day Prior” column shows the closing stock price on the day before the earnings report, and the “Price Next Day” column shows the stock price at the end of the trading day after the earnings report. After the last earnings report for the period ending June 30, 2020, the stock price reacted by increasing 7.5%.
|Report Date||Price Day Prior||Price Next Day||Change %||Result|
|August 5, 2020||$290.85||$312.70||7.5%||Increase|
|May 5, 2020||$134.11||$180.81||34.8%||Increase|
|February 28, 2020||$70.35||$63.21||−10.1%||Decline|
|October 31, 2019||$101.08||$83.74||−17.2%||Decline|
The other question to consider is one of earnings manipulation. There is a lot of pressure on management each quarter to deliver on earnings expectations. The Beneish M-Score is a statistical model that provides some insight into whether the company might be manipulating earnings. With a Beneish M-Score of −3.50, the model suggests that the company is not likely to be an earnings manipulator. A value of −3.50 implies a 0.0% chance of earnings manipulation.
Fundamentals And Technical Analysis
Wayfair Inc. is currently trading at $279.76/share, up 2.0% for the day. The company is trading at approximately 79.2% of its 52-week high of $349.08/share. The company’s stock price is down −10.5% since the last earnings report and up 3.5% over the previous week. The company’s 14 Day Relative Price Index (RSI) of 46.17 suggests the company is trading in technically neutral territory. The RSI is considered overbought when above 70 and oversold when below 30.
The current share price implies a price-to-earnings (P/E) multiple of −43.05 and a forward P/E multiple of 89.46.
Wayfair Inc.’s current share price also implies a price-to-book (P/B) multiple of −33.58. The following table summarizes some other key fundamental ratios:
|Last Reported Fiscal Period Key||FY2020.Q2|
|Period End Date||June 30, 2020|
|Stock Price (Current)||$279.76|
|P/E Ratio (Fwd)||89.5x|
|Total Debt / Total Capital||10.1%|
|Levered Free Cash Flow||$505 million|
|EV / EBITDA||−75.0x|
Wayfair Inc. is a large-cap stock with a market capitalization of $26.17 billion and a total enterprise value of $26.744 billion. The company operates in the Consumer Discretionary sector and the Internet & Direct Marketing Retail industry.
Wayfair Inc. engages in the e-commerce business in the United States and internationally. It provides approximately eighteen million products for the home sector under various brands. The company offers selection of furniture, décor, decorative accents, housewares, seasonal décor, and other home goods through its sites, including Wayfair, Joss & Main, AllModern, Birch Lane, and Perigold brands. Wayfair Inc. was founded in 2002 and is headquartered in Boston, Massachusetts.