Wayfair Inc (NYSE:W) stock took a dive on Tuesday despite positive results in its earnings report for the third quarter of 2016.
Wayfair Inc reported losses per share of 54 cents for the third quarter of 2016. This is worse than the losses per share of 13 cents for the same time last year. However, it came in above analysts’ losses per share estimate of 59 cents for the recent quarter.
Revenue reported by Wayfair Inc for the third quarter of 2016 was $861.53 million. The online retail company reported revenue of $593.97 million during the third quarter of 2015. Wall Street was looking for W to report revenue of $849.42 million during its third quarter of the year.
Wayfair Inc reported a net loss of $60.94 million during the third quarter of 2016. This is a larger net loss than the $15,48 million it reported during the time of the year prior.
Wayfair Inc said that it had a total of negative $14.0 million in free cash flow for the third quarter of 2016. It also reported that cash, cash equivalents, and short-term and long-term investments reached a total of $334.5 million by the end of the quarter.
“We are very pleased to report yet another strong quarter of rapid growth as we continue to gain significant market share,” Niraj Shah, CEO, co-founder and co-chairman of Wayfair Inc, said in a statement. “Overall, our business grew Q3 net revenue by 45 percent year over year and our Direct Retail business was up 53 percent year over year.”
W stock was down 11% as of Tuesday morning and 37%year-to-date.
