Wayfair Q1 revenue beats estimates on higher order value

Overview

• US online home goods retailer's Q1 revenue rose 7.4%, slightly beating analyst expectations

• Adjusted EPS for Q1 met analyst consensus

• Adjusted EBITDA for Q1 beat analyst expectations, with margin at five-year high

Outlook

• Wayfair did not provide specific financial guidance for the current quarter or full year

Result Drivers

• MARKET SHARE GAINS - Co said it outperformed the home furnishings market by a high single-digit spread in Q1, citing accelerated share gains

• ACTIVE CUSTOMER GROWTH - Active customers rose 1.4% year over year to 21.4 mln, which co cited as a key growth indicator

• HIGHER AVERAGE ORDER VALUE - Average order value increased to $312 from $301 a year ago, reflecting changes in product mix and purchasing behavior

Company press release: ID:nPn6PgRHca

Key Details

*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 20 "strong buy" or "buy", 14 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the department stores peer group is "buy"

• Wall Street's median 12-month price target for Wayfair Inc is $102.50, about 39.9% above its April 29 closing price of $73.27

• The stock recently traded at 24 times the next 12-month earnings vs. a P/E of 37 three months ago

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