Wayfair (W) Q4 Loss Wider Than Anticipated, Revenues Miss
Wayfair Inc. W reported non-GAAP loss of $2.80 per share in fourth-quarter 2019, wider than the Zacks Consensus Estimate of a loss of $2.65.
Total fourth-quarter revenues came in at $2.53 billion, up 26% year over year. However, the figure missed the Zacks Consensus Estimate by 0.1%.
Following its fourth-quarter results, shares declined 10.2% due to greater-than-expected losses.
Quarter in Detail
Direct retail net revenues — including sales generated primarily through Wayfair’s sites — were $2.5 billion in the fourth quarter, which increased 26.5% year over year.
U.S. net revenues were $413.1 million in the fourth quarter, up 23.9% year over year. International net revenues also grew 37.1% year over year to $106.4 million.
Active customers increased 34% from the prior-year quarter to 20.3million. Also, LTM net revenues per active customer increased 1.1% year over year to $448 million.
Total number of orders delivered in the reported quarter was 11.2 million, up 27.1% year over year. In addition, orders per customer in the quarter were 1.86 million, reflecting an increase of 0.5% from the year-ago period. Further, repeat customers placed 7.7 million orders in the fourth quarter, up 31.3% year over year.
Wayfair Inc. Price, Consensus and EPS Surprise
Operating Results
In the fourth quarter, Wayfair’s gross margin was 22.8%, down 130 basis points on a year-over-year basis.
Adjusted EBITDA margin was (7.1%) compared with (2.7%) in the year-ago quarter. This was led by increasing investments, mainly in international regions served.
The company’s operating expenses of $882.8 million increased 43.6% year over year. Operating loss was $305.4 million, wider than the prior-year loss of $129.6 million.
Balance Sheet & Cash Flow
At the end of the fourth quarter, cash, cash equivalents and short-term investments were $987 million, down from $1.3 billion in the comparable year-ago period. Accounts receivables were $99.7 million, up from $75.7 million in the third quarter.
Cash from operations was ($36.3) million and capital expenditure totaled $87.8 million. Free cash flow was ($158.5) million compared with ($180.9) million in the second quarter.
Zacks Rank and Stocks to Consider
Wayfair currently carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the broader technology sector include Stamps.com Inc. STMP, eBay Inc. EBAY and Atlassian Corp. TEAM. While Stamps.com and eBay sport a Zacks Rank #1 (Strong Buy), Atlassian carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Long-term earnings growth for Stamps.com, Atlassian Corp. and eBay is currently projected at 15%, 22.3% and 11.25%, respectively.
Breakout Biotech Stocks with Triple-Digit Profit Potential
The biotech sector is projected to surge beyond $775 billion by 2024 as scientists develop treatments for thousands of diseases. They’re also finding ways to edit the human genome to literally erase our vulnerability to these diseases.
Zacks has just released Century of Biology: 7 Biotech Stocks to Buy Right Now to help investors profit from 7 stocks poised for outperformance. Our recent biotech recommendations have produced gains of +50%, +83% and +164% in as little as 2 months. The stocks in this report could perform even better.
from the Yahooo in 2020-03-06 AM 0:30
