Why Wayfair (W) is Poised to Beat Earnings Estimates Again

Core Viewpoint - Wayfair is positioned to potentially continue its earnings-beat streak in the upcoming report, having surpassed earnings estimates significantly in the last two quarters [1]. Earnings Performance - In the last reported quarter, Wayfair achieved earnings of $0.7 per share, exceeding the Zacks Consensus Estimate of $0.46 per share by 52.17% [2]. - In the previous quarter, Wayfair's earnings were $0.87 per share against an expected $0.36 per share, resulting in a surprise of 141.67% [2]. Earnings Estimates - There has been a favorable change in earnings estimates for Wayfair, with a positive Zacks Earnings ESP of +2.81%, indicating bullish sentiment among analysts regarding the company's earnings prospects [4][7]. - The combination of a positive Earnings ESP and a Zacks Rank of 3 (Hold) suggests a high likelihood of another earnings beat [4][7]. Predictive Metrics - Research indicates that stocks with a positive Earnings ESP and a Zacks Rank of 3 or better have a nearly 70% chance of producing a positive surprise [5]. - The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate, with the Most Accurate Estimate reflecting the latest analyst revisions [6].