Today, eyewear company Warby Parker (NYSE:WRBY) is seeing some impressive price action. Currently, WRBY stock is up more than 10% at the time of writing on a relatively strong day in the markets.
This week has certainly been an intriguing one for investors in WRBY stock. Coming into the report, investors appeared to be keen on selling into earnings. It appears that concerns around both supply-chain constraints and inflation-related margin pressures were to blame for this move. Price action on Wednesday and Thursday resulted in a dip of approximately 10% in shares for the eyewear company.
This certainly makes today’s move an intriguing one to watch. Warby Parker’s stock price initially dipped in earlier trading, following the release of some rather strong numbers. However, shares have made back all of Wednesday and Thursday’s declines as of the early afternoon.
Let’s dive into two particular reasons why WRBY has rebounded so strongly today.
WRBY Stock Is Up on Very Strong Earnings
Today, the key catalyst investors are keeping an eye on with WRBY stock is the company’s earnings report. Earnings came out this morning. For the period, revenue rose 32% on a year-over-year (YOY) basis, with active customers also jumping 23% YOY to 2.15 million.
That said, the eyewear maker did report a loss of $1.45 per share, which was higher than analyst estimates of 52 cents per share.
For a company that’s growing this quickly, perhaps investors are willing to look past this. Indeed, it’s still a growth investor’s market. However, another key factor investors are considering with WRBY stock is a revenue upgrade provided in the recent earnings report.
Warby Parker has boosted its outlook for full-year revenue to as much as $542 million from $537 million. This would represent an increase of approximately 38% on a YOY basis. Investors seem to like this revenue growth story.
Indeed, there’s probably some work to be done on the bottom line. But for now, investors are appreciating the direction Warby Parker is headed in growing its market share.
On the date of publication, Chris MacDonald did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.