Wayfair Earnings: W Stock Tanks 18% After Huge Miss

W missed EPS estimates by 13 cents

Wayfair (NYSE:W) earnings for the e-commerce company’s third quarter of 2019 hit W stock hard on Thursday. That’s due to its Non-GAAP diluted net loss per share of -$2.23. This is a major miss from Wall Street’s estimate of -$2.10. Revenue of $2.30 billion is above analysts’ estimates of $2.27 billion, but couldn’t save W stock.

Wayfair Earnings: W Stock Tanks 18% After Huge Miss
Source: Jonathan Weiss / Shutterstock.com

Let’s take a closer look at the Wayfair earnings report for Q3 2019.

  • Non-GAAP diluted net loss per share is 74.22% wider YoY than -$1.28.
  • Revenue for the quarter was up 35.90% from the same time last year.
  • W’s gross profit comes in at $539.90 million, which is 23.40% of revenue.
  • Loss from operations is -$259.71 million.
  • That’s a 78.78% wider operating loss from the -$145.27 million reported in the same period of the year prior.
  • The Wayfair earnings report also includes a net loss of $272.04 million.
  • This is 79.29% worse than its net loss of -$151.73 million in the third quarter of 2018.
  • Cash, cash equivalents, as well as short-term and long-term investments, were $1.30 billion at the end of the quarter.

Niraj Shah, CEO, co-founder and co-Chairman of Wayfair, says this about the Q3 W stock earnings.

“We are pleased to report Q3 Direct Retail net revenue growth of $607 million up 36 percent year over year. This period of strong growth took place, despite some short-term tariff related volatility.”

W stock was down 18.65% when the markets closed on Thursday. The stock isn’t moving much in after-hours trading.

As of this writing, William White did not hold a position in any of the aforementioned securities.


Article printed from InvestorPlace Media, https://investorplace.com/2019/10/wayfair-earnings-hit-w-stock/.

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