Wayfair Beats Expectations in Q1 2024 Earnings, Gains Market Share

Piper Sandler's Peter Keith raised their price target on Wayfair (NYSE: W) by 3.4% from $88 to $91 on 2024/05/03. The analyst reiterated their Strong Buy rating on the stock.

According to Keith, Wayfair's Q1 2024 earnings came in ahead of expectations, and the company provided "better than the low expectations" Q2 guidance. This positive performance suggests that Wayfair is gaining market share, which bodes well for its future growth once the industry stabilizes.

In Q1 2024, Wayfair reported a loss per share of $0.32, beating the Zacks Consensus Estimate of $(0.45) and improving from Q1 2023's $(1.13) loss per share. The company generated revenue of $2.73 billion, slightly lower than Q1 2023's $2.77 billion but still beating the Zacks Consensus Estimate of $2.82 billion. Additionally, Wayfair reported adjusted EBITDA of $75 million.

Looking ahead to Q2 2024, Wayfair's management provided guidance for a gross margin of 30% to 31% and an adjusted EBITDA margin in the mid-single digits. Co-founder, Co-Chairman & CEO Niraj Shah expressed optimism about Wayfair's performance, stating, "Our revenue was down just under 2% Y/Y for Q1, which marks our sixth straight quarter of market share gain. Shoppers are increasingly choosing Wayfair, with Y/Y active customer growth once again positive and accelerating compared to last quarter."

Analysts from Bernstein, BMO Capital, and TD Cowen also updated their ratings and price targets for Wayfair on May 3, 2024. Bernstein's Nikhil Devnani raised the price target by 10% to $55 and maintained a Hold rating. BMO Capital's Brian Pitz raised the price target by 7% to $61 and also maintained a Hold rating. TD Cowen's John Blackledge increased the price target by 5.5% to $58 while maintaining a Hold rating.

Currently, 66.7% of top-rated analysts view Wayfair as a Strong Buy or Buy, while 33.3% consider it a Hold. No analysts recommend or strongly recommend selling the stock.

Since Wayfair's latest quarterly report on May 2, 2024, the stock price has increased by 8.4%. Year-over-year, the stock has risen by an impressive 103.2%. During this period, Wayfair has outperformed the S&P 500, which has gained 25.4%.

Piper Sandler analyst Peter Keith, who raised Wayfair's price target, is ranked in the top 9% of Wall Street analysts by WallStreetZen. Specializing in the Consumer Cyclical, Consumer Defensive, and Healthcare sectors, Keith has an average return of 8.9% and a win rate of 52.7%.

Wayfair Incorporated, an e-commerce company headquartered in Boston, MA, operates five branded retail websites offering furniture and home goods. These websites include Wayfair, Joss & Main, AllModern, Birch Lane, and Perigold. With a wide range of products from 11,000 global suppliers, Wayfair has positioned itself as a significant player in the online home goods market.

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