Etsy Q2 Earnings Preview: Wall Street Expects 31.7% EPS Increase, but Tariffs Pose Risks

Etsy's Q1 earnings report is expected to show a 31.7% year-over-year increase in EPS to $0.54 and revenues of $648.01 million, unchanged from last year. Analysts are concerned about the impact of tariff uncertainty and fragile consumer confidence on the company's stock. Canaccord raised its price target to $68, while Barclays lowered its target to $52 and JPMorgan raised its target to $53.

Etsy, Inc. (ETSY) is expected to report its Q1 earnings with a 31.7% year-over-year increase in earnings per share (EPS) to $0.54, according to Wall Street analysts. Revenue is forecasted to remain unchanged at $648.01 million compared to the same quarter last year. This positive outlook comes despite concerns about the impact of tariff uncertainty and fragile consumer confidence on the company's stock [1].

Analysts have revised their EPS estimates upward by 0.7% over the past 30 days, reflecting their collective reconsideration of initial forecasts. The consensus revenue estimate also remains unchanged. This suggests that analysts are cautiously optimistic about Etsy's performance despite external headwinds.

Key metrics projected by analysts include:
- 'Revenue- Services' is expected to reach $189.56 million, indicating a 6.8% year-over-year increase.
- 'Revenue- Marketplace' is forecasted to be $459.65 million, with a year-over-year decrease of 2.3%.
- 'Total GMS' is anticipated to be $2.77 million, down from $2.95 million last year.

Additionally, analysts predict 'Active buyers' to reach 94,648, down from 96,610 last year, while 'Active sellers' are expected to be 8,155, compared to 8,801 last year.

The stock has seen a significant increase of +23.3% in the past month, outperforming the Zacks S&P 500 composite's +4.9% gain. Etsy currently holds a Zacks Rank #2 (Buy), indicating that analysts expect the stock to outperform the market in the near future.

Price targets from major firms vary, with Canaccord raising its target to $68, Barclays lowering it to $52, and JPMorgan raising it to $53. These discrepancies highlight the differing views among analysts on Etsy's future prospects.

Etsy's Q1 earnings report, scheduled to be released soon, will provide further clarity on the company's performance and how it navigates the challenges posed by tariffs and consumer confidence.

References:
[1] https://www.nasdaq.com/articles/countdown-etsy-etsy-q2-earnings-look-estimates-beyond-revenue-and-eps