Wayfair (W) Beats Revenue Expectations in Q4, but Stock Declines
Company Highlights
* Revenue: $3.12 billion (2% above analyst estimates)
* Non-GAAP EPS: -$0.25 (below analyst expectations of $0)
* Adjusted EBITDA: $96 million (7.1% below analyst estimates)
* Active Customers: 21.4 million (1 million less than Q4 2023)
* Market Cap: $5.81 billion
Key Performance Indicators
* Sales remained flat year-over-year
* Operating margin improved year-over-year from -5.5% to -3.7%
* Free cash flow increased from -$9 million in Q3 to $102 million in Q4
CEO Commentary
"The fourth quarter was a strong conclusion to the year across multiple fronts... we delivered on our goal of approximately 50% year-over-year dollar growth for 2024." - Niraj Shah, CEO, Wayfair
Industry Analysis
* Online retail continues to grow due to convenience, selection, and speed factors.
* Wayfair's sales growth has been weak in recent years, indicating lower business quality.
Analyst Outlook
* Analysts expect Wayfair's revenue to remain flat in the next 12 months.
* The stock price declined by 7.4% to $42.89 post-earnings.
Conclusion
Wayfair's Q4 performance was mixed, with revenue exceeding expectations but active customers and EBITDA falling short. The stock's decline reflects investors' cautious outlook. Further analysis is required to determine if the current market price represents a buying opportunity.