Etsy's Q3 Core Gross Merchandise Sales Growth Likely to Miss Street Estimates, UBS Says

MT Newswires Live10-16

Etsy's (ETSY) Q3 core gross merchandise sales growth, or GMS, is likely to fall short of Wall Street estimates, which should not be a surprise as the e-commerce company did not reiterate its guidance for accelerating GMS through H2 during its Q2 earnings call, UBS said in a note emailed Tuesday.

UBS estimates Etsy's core GMS to fall 3.4% year over year in Q3, compared with Visible Alpha's consensus for a 1.8% decline. The investment firm also estimates consolidated GMS to drop 2.4%, versus consensus for a 2.2% decline.

"We see limited evidence that Q3 was an inflection point back to GMS growth," UBS said.

For Q4, UBS expects the company's consolidated GMS to see a 1.7% drop, versus the Street's estimate for a 1.3% drop.

Meanwhile, [full-year 2025] Street estimates look too high

and shares lack [valuation] support without a clearer trend back to GMS growth," UBS said.

UBS maintained a neutral rating on Etsy but lowered its price target to $58 from $65.

Price: 51.16, Change: +1.55, Percent Change: +3.12

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

We need your insight to fill this gap
Leave a comment