Etsy's stock soars after bullish analyst note ahead of results

Aug 1, 2016

Shares of Etsy Inc. rocketed 17% to a more than 10-month high in afternoon trade Monday, after Citigroup issued a bullish note on the online crafts marketplace a day before it was scheduled to report second-quarter results. That would mark the second-biggest one-day gain since the stock went public on April 16, 2015. Volume was about 7.3 million shares, already nearly five times the full-day average. Citigroup analyst Mark Kelley started coverage of Etsy with a buy rating, and a stock price target of $14, which was 19% above current levels.

Kelley said he believes current consensus estimates for Etsy's seller services business "are far too conservative," as the company has made steady progress expanding its take rate as sellers adopt the additive services products. "We view Etsy's long-term targets as more than achievable, and expect to see upside to consensus numbers as we progress throughout the year and into 2018," Kelley wrote in a note to clients.

Etsy is expected to report after Tuesday's closing bell a loss of 2 cents a share on revenue of $80.6 million. The stock has soared 34% year to date, while the S&P 500 has gained 6.2%

Etsy Replaces Its CEO After Swinging to a Loss

May 2, 2017

Etsy Inc. is replacing its chief executive and cutting about 8% of its workforce after the online marketplace reported a first-quarter loss and what it described as “a challenging February.”

The Brooklyn, N.Y., company said that board member Josh Silverman would become CEO on Wednesday, replacing Chad Dickerson, who has led the company for the past six years. He will serve as an adviser until the end of the month, Etsy said.

Mr. Dickerson is also stepping down as chairman of the board, to be replaced by Fred Wilson, another director.

For the first quarter, Etsy posted a loss of $421,000, compared with a year-ago profit of $1.2 million. Revenue climbed 18% to $96.9 million, while operating expenses rose 36% to $64.3 million. Since going public in 2015, the company has spent money on a new craft-supplies marketplace, new headquarters, ad campaigns and other initiatives.

Etsy said it would cut about 80 positions as part of efforts to rein in costs. It added that it would review its financial outlook for 2017 and would reissue it along with its second-quarter results.

The executive shuffle came hours after Black-and-White Capital LP, which owns about 2% of Etsy’s shares outstanding, released a letter criticizing aspects of the company both big and small, from its “horrendous search functionality” to “historical pattern of ill-advised spending.” It also called for Etsy to separate the roles of CEO and chairman and explore strategic alternatives, including a sale of the company.

Etsy didn’t immediately respond to a request for comment regarding the letter.

In addition to the CEO change, Etsy said its technology chief, John Allspaw, would be replaced temporarily by its vice president of engineering, Mike Brittain.

Etsy’s shares fell 10% to $10.29 in after-hours trading.

Online marketplace Etsy soars after increasing the fees it takes from each sale

Published 12 Mins Ago

Online crafts marketplace Etsy's shares soared Thursday after announcing it'll take a larger percentage of each sale and raising its full-year guidance to reflect the higher revenue.

Shares opened up roughly 23 percent at $40.86, after closing Wednesday at $32.99.

The company said Thursday it was raising the base take rate — or the percentage of a sale that Etsy keeps for itself — from 3.5 percent to 5 percent, effective July 16.

It now expects full-year revenue growth between 32 percent and 34 percent, up from its previous guidance of 22 percent to 24 percent.

Etsy, whose platform connects artisans and crafters with online shoppers, also announced new subscription plans and tools for its independent vendors.

As of Thursday's open the stock is up 100 percent year to date and more than 200 percent in the 12-month period.

Etsy Reports Quarterly Earnings Today. Here’s What to Expect.

Feb. 25, 2019

Shares of Etsy, which closed Friday at $56.67, are up some 170% over the last year as the S&P 500 has risen less than 3%. FactSet’s average price target is around $59, about 4% above current levels.

Wall Street is looking for earnings of 20 cents per share using standard accounting methods, or 27 cents per share without them, according to FactSet, on revenue of $194.9 million.

The consensus EPS estimate has come down by a penny since the end of December.

In November, the company boosted its full-year guidance for gross merchandise sales — the measure of how much stuff is sold through Etsy, rather than how much money it makes in connection with those sales — revenue, and adjusted earnings before interest, taxes, depreciation, and amortization margin.

It told investors to expect full-year GMS of between $3.87 billion and $3.9 billion, up 19%-20% year-over-year; revenue of $596-$600 million, up 35%-36%; and an adjusted Ebitda margin of 22%-23% based on the midpoint of its revenue guidance.

That midpoint, $598 million, implies Q4 revenue of $194 million, right around the Street’s consensus.

In last year’s Q4, Etsy reported EPS of $0.15 using standard accounting methods, or $0.36 without them, on revenue of $136.3 million.

Etsy Inc. shares fell 8% in the extended session Wednesday after the marketplace company reported first-quarter sales that were slightly below Wall Street expectations. Etsy said it earned $32 million, or 24 cents a share, in the quarter, compared with $13 million, or 10 cents a share, in the year-ago quarter. Revenue rose 40% to $169.3 million, thanks to growth in both marketplace and services revenue, Etsy said.

Analysts polled by FactSet had expected Etsy to report earnings of 14 cents a share on sales of $170.1 million. The company raised its 2019 revenue guidance to between $785 million and $797 million, from a previous guidance of between $779 million and $797 million.