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Though Wayfair ( W ) is nowhere near the size of mighty e-commerce leader Amazon.com ( AMZN ), its swing to EBITDA profitability and its Q4 beat on both the top and bottom lines has analysts optimistic about its future. Wayfair, an online seller of furniture and other products mostly for the home, early Thursday handily beat expectations, posting adjusted Q4 EBIDTA of $2.8 million. Analysts polled by Thomson Reuters had estimated a $2.1 million loss on adjusted earnings before interest, taxes, deductions and amortization. Fourth-quarter sales jumped 80% from the year-earlier quarter, to $740 million. Wayfair lost 7 cents per share minus items, the company reported . Wall Street had estimated a 15-cent per-share loss, and revenue of $678 million. “Due to the exceptional growth of our business throughout 2015, we’re able to achieve and exceed this goal much faster than previously anticipated,” CEO Niraj Shah said on the company’s earnings call with analysts. “And importantly, this positive adjusted EBITDA was generated while we maintained our ongoing investment into the business” Wayfair stock was up 7%, near 43, in afternoon trading on the stock market today . The company has an IBD Composite Rating of 72, where 99 is the highest. Its stock chart is a fuzzy one, but there is a double-bottom base forming, with a buy point at 47.78. “Wayfair delivered another outstanding quarter with a solid revenue and adjusted EBITDA beat,” Wells Fargo analyst Matt Nemer said in a research note. Goldman Sachs analyst Debra Schwartz this month upgraded Wayfair stock to a buy. Earlier this week, e-commerce company Etsy ( ETSY ) saw its stock pop after its Q4 earnings beat . Scalper1 News
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