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Etsy (ETSY) earnings: expect 40% revenue growth

5:30 pm ET, 06 May 2019

Etsy, Inc. (ETSY) is announcing earnings on May 08, after the market closes. Wondering what revenue and earnings will look like?

What should you expect from the upcoming earnings?

Revenue for the next quarter is expected to be $169M, which implies 40% growth rate year-over-year.

Earnings per share are expected to come in at $0.14. If this materializes, EPS will grow 40% year-over-year.

How did the stock do last month?

Over the last month, Etsy, Inc. (ETSY) returned -0.04%.

How is the stock valued?

Etsy, Inc. (ETSY) forward P/E ratio is 60.96, and it’s high compared to its industry peers’ P/E ratios.

What do analysts say about the stock?

Etsy, Inc. (ETSY) average analyst price target is 9.11% above its current price ($67.54).

For the latest price and information on Etsy, Inc., please visit Finstead and ask for "ETSY", "ETSY analysis" or "ETSY news".

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Etsy, Inc. (ETSY) Stock Guide

Updated at: 7:51 pm ET, 17 Sep 2020

Before we start: if you're looking for ETSY stock price, you can quickly find it out by visiting Finny and typing "ETSY quote". If you're looking for a quick scoop on ETSY stock (chart, price target, market cap, news and buy or sell analysis), go to Finny and look for "ETSY". You'll get all this info in one place. Or you can just type "ETSY news" to get the latest stock news.

Looking to buy or sell Etsy, Inc. (ETSY)? Interested in getting the full scoop on ETSY, including earnings and dividends, stock forecast, buy or sell analysis and key stats? If so, you came to the right place.

In this ETSY stock guide, we'll address key questions about ETSY, above and beyond what you can find on Yahoo Finance, Zacks, MarketWatch or Morningstar.

Here is what you'll be able to find in this guide:

Earnings and Dividends: earnings, earnings date, dividend rate and dividend yield;
Analysis: Finny Score and buy or sell analysis;
Key Stats: revenue, market cap, revenue growth, profit margin, P/E ratio, P/B ratio, industry, sector, and number of employees.

And here is the list of questions we'll answer:
1. What are ETSY earnings?
2. ETSY buy or sell? What is ETSY Finny Score?
3. What are the reasons to buy ETSY? Why should I buy ETSY stock?
4. What are the reasons to sell ETSY? Why should I sell ETSY stock?
5. What are ETSY key stats: revenue, market cap, revenue growth, profit margin, P/E ratio, P/B ratio industry, sector, and number of employees?

So let's start. Scroll down to the question that interests you the most.

Earnings and Dividends

1. What are ETSY earnings?

ETSY trailing 12-month earnings per share (EPS) is $1.28.

Analysis

2. ETSY buy or sell? What is ETSY Finny Score?

#{finnyScore:36}Our quantitative analysis shows 4 reasons to buy and 7 reasons to sell ETSY, resulting in Finny Score of 36.

3. What are the reasons to buy ETSY? Why should I buy ETSY stock?

Here are the reasons to buy ETSY stock:

  • Etsy has been growing its revenue in double digits. The company benefits from increased online purchases. Most of the consumers do repeated sales on the Etsy platform. The company is also profitable on a GAAP basis.
  • A lot of users like the Etsy platform compared to Amazon since Etsy is more flexible. They feel that Amazon exerts too much pressure on the sellers. This has helped to increase active buyers and sellers. The company has developed a niche for the handcrafted and vintage item sales.
  • Online trends suggest that holiday spending has been strong. Short-term investors are looking for a quick buck as the stock has given good returns when the company beats estimates on the earnings day.
  • ETSY quarterly revenue growth was 136.70%, higher than the industry and sector average revenue growth (0.81% and 0.78%, respectively). See ETSY revenue growth chart.
  • ETSY profitability is improving. The YoY profit margin change was 26.73 percentage points. See ETSY profitability chart.
  • ETSY PEG ratio (P/E adjusted for growth) is 1.08, which is low compared to its industry peers’ PEG ratios. See ETSY PEG chart.
  • ETSY cash to debt ratio is 1.21, higher than the average industry (0.16) and sector (0.13) cash to debt ratio. See ETSY cash to debt chart.

4. What are the reasons to sell ETSY? Why should I sell ETSY stock?

Let's look at the reasons to sell ETSY stock (i.e., the bear case):

  • The company has a strong run in the stock market. Investors are looking to exit the stock after a decent profit. Valuations look stretched with a P/E ratio above 50, and a double-digit price to sales ratio.
  • The company’s operating expenses are rising and the trend is expected to continue in the coming quarters.
  • Etsy increased the seller’s fees from 3.5% to 5.0% in July 2018. This has had a positive effect on the company’s earnings. However, in the longer term, a lot of sellers will be moving to other cheaper platforms.
  • ETSY stock price ($119.59) is close to the 52-week high ($134.72). Perhaps now is a good time to sell? See ETSY price chart.
  • ETSY forward P/E ratio is 59.55, which is high compared to its industry peers’ P/E ratios. See ETSY forward P/E ratio chart.
  • ETSY Price/Book ratio is 28.42, which is high compared to its industry peers’ P/B ratios. See ETSY forward Price/Book ratio chart.
  • ETSY Price/Sales ratio is 14.08, which is high compared to its industry peers’ P/S ratios. See ETSY forward Price/Sales ratio chart.
  • ETSY short share of float is 6.62%. The stock is much more frequently shorted than the average industry, sector or S&P 500 stock. See ETSY short share of float chart.
  • ETSY short interest (days to cover the shorts) ratio is 2.18. The stock garners more short interest than the average industry, sector or S&P 500 stock. See ETSY short interest ratio chart.
  • ETSY Enterprise Value/Revenue multiple is 26.37, which is high compared to its industry peers’ Enterprise Value/Revenue multiples. See ETSY Enterprise Value/Revenue chart.

Key Stats

5. What are ETSY key stats : revenue, market cap, revenue growth, profit margin, P/E ratio, P/B ratio industry, sector, and number of employees?

Let's look at the key statistics for ETSY:

Metrics ETSY
Price $139.22
Average Price Target / Upside $152.53 / 9.56%
Average Analyst Rating Hold
Forward Dividend Yield 0.00%
Industry Specialty Retail
Sector Consumer Cyclical
Number of Employees 874
Market Cap $18.99B
Forward P/E Ratio 71.08
Price/Book Ratio 16.88
Revenue (TTM) $1.12B
YoY Quarterly Revenue Growth 136.70%
Profit Margin 13.78%

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