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Etsy stock plunged Wednesday night after reporting better-than-estimated second quarter earnings and revenue, but its forecast missed expectations as more consumers return to physical retail stores.
After the market closes, craft e-commerce site Etsy (ETSY) reported adjusted earnings of 68 cents per share on revenue of $ 528.9 million. Profits are down 9% from a year ago period, but still top views, while revenue is up 23%, beating estimates.
Analysts expected Etsy to earn 63 cents a share on revenue of $ 526 million. Gross merchandise sales rose 13% to $ 3.04 billion, according to estimates.
Earnings before interest, taxes, depreciation and amortization fell 7% to $ 139.5 million, the missing estimate of $ 141 million.
Etsy stock plunged 13.6% to nearly 175 during extended trading in the stock market today. Shares climbed 6% in Wednesday’s regular session.
“The underlying growth and trends of buyer cohorts in our core Etsy marketplace remain encouraging as the world reopens and consumer spending habits change,” CFO Rachel Glaser said in a press release. written on the results. “Despite a decline in the growth of new buyers, which we anticipated when the pandemic ended, in the second quarter we still added 8 million new buyers to the Etsy marketplace, nearly double the number of new buyers acquired in the second quarter of 2019. “
Etsy Stock: Tips for Earning Below Estimates
For the current quarter ending in September, Etsy is forecasting revenue of between $ 500 million and $ 525 million and gross merchandise sales of $ 2.9 billion to $ 3 billion. Analysts had forecast revenue of $ 527 million and GMS of $ 3.02 billion.
Etsy provides an online e-commerce platform where creators of arts and crafts, vintage items, and other unique products will sell their products. Business exploded last year amid the coronavirus pandemic.
Etsy closed in July the acquisition of DePop, a second-hand fashion website, for $ 1.6 billion.
Prior to Etsy’s earnings report, the stock had a relative strength rating of 63 out of 99. Etsy’s shares fell in May on weaker-than-expected guidance.
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