Etsy (ETSY) Surpasses Q4 Earnings Estimates

Company Performance - Etsy reported quarterly earnings of $1.03 per share, exceeding the Zacks Consensus Estimate of $0.95 per share, and up from $0.78 per share a year ago, representing an earnings surprise of 8.42% [1] - The company posted revenues of $852.16 million for the quarter ended December 2024, which missed the Zacks Consensus Estimate by 1.11%, but was an increase from $842.32 million year-over-year [2] - Over the last four quarters, Etsy has surpassed consensus EPS estimates just once and topped consensus revenue estimates two times [2] Stock Outlook - The immediate price movement of Etsy's stock will largely depend on management's commentary during the earnings call and the sustainability of the earnings surprise [3] - Etsy shares have increased approximately 8.2% since the beginning of the year, outperforming the S&P 500's gain of 4% [3] - The current consensus EPS estimate for the upcoming quarter is $0.48 on revenues of $660.16 million, and for the current fiscal year, it is $2.60 on revenues of $2.9 billion [7] Industry Context - The Internet - Commerce industry, to which Etsy belongs, is currently ranked in the top 31% of over 250 Zacks industries, indicating a favorable outlook compared to the bottom 50% [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can impact Etsy's stock performance [5] - Another company in the same industry, Groupon, is expected to report a quarterly loss of $0.06 per share, reflecting a year-over-year change of -120% [9]