Wayfair beats Q3 revenue, profit estimates on more customers, orders

Overview

• U.S. online home goods retailer's Q3 revenue rose 9.7%, slightly beating analyst expectations

• Adjusted EPS for Q3 beat analyst expectations

• Company attributes growth to strong U.S. order volume and higher active customers

Outlook

• Wayfair did not provide specific financial guidance for the current quarter or full year

Result Drivers

• ORDER GROWTH - Co said Q3 revenue growth was driven by a 12% increase in orders delivered and a 4.7% rise in active customers

• U.S. MARKET SHARE GAINS - Co said double-digit U.S. revenue growth reflected share gains in a flat category, per CEO Niraj Shah

• REPEAT CUSTOMERS - Repeat customers placed 80% of total orders and repeat order volume rose 11.4% year-over-year

Company press release:

Key Details

*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 22 "strong buy" or "buy", 13 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the department stores peer group is "buy"

• Wall Street's median 12-month price target for Wayfair Inc. is $127.50, about 14.5% above its November 3 closing price of $111.32

• The stock recently traded at 30 times the next 12-month earnings vs. a P/E of 26 three months ago

Reuters Recommended Reads

• Nov 3 - Revolve Q3 sales beat consensus on order growth

• Nov 3 - South Korea's Coupang Q3 revenue beats estimates

• Nov 3 - Retailer Zalando launches AI shopping agent as margins squeezed

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)