Online home goods retailer Wayfair (NYSE:W) will be reporting earnings this Tuesday morning. Here’s what to look for.
Wayfair beat analysts’ revenue expectations by 4.8% last quarter, reporting revenues of $3.27 billion, up 5% year on year. It was a mixed quarter for the company, with an impressive beat of analysts’ EBITDA estimates but a significant miss of analysts’ number of active customers estimates. It reported 21 million active buyers, down 4.5% year on year.
Is Wayfair a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, analysts are expecting Wayfair’s revenue to grow 4.4% year on year to $3.01 billion, a reversal from the 2% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.44 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Wayfair has missed Wall Street’s revenue estimates twice over the last two years.
Looking at Wayfair’s peers in the consumer internet segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Coursera delivered year-on-year revenue growth of 10.3%, beating analysts’ expectations by 2.1%, and Netflix reported revenues up 17.2%, in line with consensus estimates. Coursera traded down 12.7% following the results while Netflix was also down 10.1%.
Read our full analysis of Coursera’s results here and Netflix’s results here.
Debates around the economy’s health and the impact of potential tariffs and corporate tax cuts have caused much uncertainty in 2025. While some of the consumer internet stocks have shown solid performance in this choppy environment, the group has generally underperformed, with share prices down 2.5% on average over the last month. Wayfair is down 6.6% during the same time and is heading into earnings with an average analyst price target of $85.24 (compared to the current share price of $83.31).
Today’s young investors won’t have read the timeless lessons in Gorilla Game: Picking Winners In High Technology because it was written more than 20 years ago when Microsoft and Apple were first establishing their supremacy. But if we apply the same principles, then enterprise software stocks leveraging their own generative AI capabilities may well be the Gorillas of the future. So, in that spirit, we are excited to present our Special Free Report on a profitable, fast-growing enterprise software stock that is already riding the automation wave and looking to catch the generative AI next.
StockStory is growing and hiring equity analyst and marketing roles. Are you a 0 to 1 builder passionate about the markets and AI? See the open roles here.