Wayfair's Q1 2024 Results Beat Expectations, Analysts Maintain Hold Rating

TD Cowen's John Blackledge raised their price target on Wayfair (NYSE: W) by 5.5% from $55 to $58 on 2024/05/04. The analyst maintained their Hold rating on the stock.

Wayfair, the e-commerce company specializing in furniture and home goods, reported its Q1 2024 earnings on May 2nd, 2024. The quarter's performance exceeded estimates, and management expressed optimism regarding improving trends in Q2, suggesting that revenue will be flat to slightly positive year-over-year. Wayfair's Q1 2024 results showcased a loss per share of $0.32, surpassing both the Zacks Consensus Estimate of $(0.45) and the previous year's Q1 loss of $(1.13). Revenue for the quarter amounted to $2.73 billion, slightly missing last year's Q1 revenue of $2.77 billion by 1.4%, but surpassing the Zacks Consensus Estimate of $2.82 billion. Adjusted EBITDA for the quarter stood at $75 million.

Co-founder, Co-Chairman & CEO Niraj Shah shared his perspective on the company's performance, stating, "Our revenue was down just under 2% year-over-year for Q1, which marks our sixth straight quarter of market share gain. Shoppers are increasingly choosing Wayfair, with year-over-year active customer growth once again positive and accelerating compared to last quarter. For the first time since pre-pandemic, we're seeing suppliers introducing large groups of new products into their catalogs as they look to build momentum for the next stage of growth. Across the board, we're hearing their enthusiasm to partner with Wayfair and substantial interest to lean-in behind our entire offering - joining our curated brands, being featured in our promotional events, leveraging our fulfillment solutions, taking advantage of supplier advertising, and having shelf space in our stores."

Following the earnings release, several other analysts updated their ratings and price targets for Wayfair on May 3rd, 2024. Bernstein's Nikhil Devnani increased their price target by 10% from $50 to $55 and maintained their Hold rating on the stock. BMO Capital's Brian Pitz raised their price target by 7% from $57 to $61 while also maintaining a Hold rating. Piper Sandler's Peter Keith raised their price target by 3.4% from $88 to $91 and reiterated their Strong Buy rating on the stock.

Currently, 60% of top-rated analysts rate Wayfair as a Strong Buy or Buy, while 40% see it as a Hold. None of the analysts recommend or strongly recommend selling the stock.

Since Wayfair's latest quarterly report on May 2nd, 2024, the stock price has surged by 16.7%. Year-over-year, the stock has experienced a substantial increase of 71.2%. During this period, Wayfair has outperformed the S&P 500, which has seen a growth of 25.2%.

TD Cowen analyst John Blackledge, who raised the price target for Wayfair, is ranked in the bottom 5% of Wall Street analysts by WallStreetZen. With an average return of -5.7% and a win rate of 41.7%, Blackledge specializes in the Technology, Consumer Cyclical, and Communication Services sectors.

Wayfair Incorporated, formerly known as CSN Stores, was founded in 2002 and is headquartered in Boston, Massachusetts. The company operates through five branded retail websites, including Wayfair, Joss & Main, AllModern, Birch Lane, and Perigold, offering a wide range of products from 11,000 global suppliers, totaling 14 million items.

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