Etsy Earnings: ETSY Stock Sinks on Q1 Earnings Beat, Lawsuit

ETSY shares are down more than 6% after hours

Etsy (NASDAQ:ETSY) unveiled its latest quarterly earnings results late Wednesday afternoon, bringing in mixed results that included a profit that topped the mark, while revenue failed to live up to expectations, playing a role in ETSY stock sinking after hours.

Etsy EarningsThe Brooklyn, New York-based online platform for arts and crafts said that for its first quarter of its fiscal 2019, it brought in adjusted earnings of 24 cents per share. Wall Street said in its consensus estimate that it called for the company to amass adjusted earnings of 14 cents per share.

Etsy added that it brought in revenue of $169.3 million for its first three-month period of the fiscal year. Analysts were calling for the business to bring in revenue of $170 million in their consensus estimate.

The website also came under fire recently as a California mother filed a lawsuit against the company after her 18-month-old son who was strangled by an item that she bought on Etsy. Deacon Morin, the boy, was wearing a beaded necklace around his neck and he took a nap–the necklace then tightened and did not release.

“Baby necklaces, if you use a baby necklace should have a releasing safety clasp so if there’s any pulling on it, it releases. This one that was purchased on Etsy had a screw on clasp that could not be released. And so when baby Deacon was hung up on something, it didn’t release and caused him to suffocate,” the mother Danielle Morin’s attorney, John Carpenter, said.

ETSY stock is down about 6.7% after the bell following the company’s results and the news of the lawsuit. Shares had been gaining roughly 1.7% during regular trading hours in anticipation of the company’s quarterly earnings results.

Article printed from InvestorPlace Media,

©2020 InvestorPlace Media, LLC