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Wayfair Excels By Any Measure After 'Blowout' Q2

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Wayfair Excels By Any Measure After 'Blowout' Q2
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Wayfair Whacked Despite Q2 Beat

Thanks to a “blowout” second quarter, an analyst reiterated a Buy rating for Wayfair Inc (NYSE: W) after the household goods e-commerce company beat both top- and bottom-line expectations with revenue growth of 46 percent.

Wayfair had $1.1 billion in revenues for the quarter, beating consensus estimates, Buckingham Research analyst Kelly Halsor said in a note.

Prospects Bright For 3Q

“By all measures, 2Q17 was a blowout quarter with direct revenue growth of 46% coming in above even the whisper numbers for growth in the low-40% range driven by a meaningful acceleration in U.S. direct revenue growth to 39% (vs. 24.5% in 1Q),” Halsor wrote (see his track record here).

Related Link: Wayfair Shares Are Fully Valued; Maxim Downgrades To Hold

Halsor set a target price of $95. Wayfair closed at $80.57 Monday.

“For now, investors will be focused on the 3Q17 QTD direct revenue growth provided on the call, which we expect to show a further acceleration in direct revenue growth given comparisons in 3Q ease by another 20% relative to 2Q,” Halsor wrote.

“After delivering meaningful incremental leverage on stronger sales growth in 2Q, we expect investors to also focus on what the implications of stronger revenue will mean for the bottom line in 3Q and beyond.”

“With W shares still largely valued on a P/S multiple, we continue to recommend investors add to W positions as we expect consensus sales and EBITDA estimates to move higher following the strong 2Q17 beat.”

Latest Ratings for W

DateFirmActionFromTo
Aug 2017Credit SuisseMaintainsNeutral
Jun 2017Gordon HaskettDowngradesBuyAccumulate
Jun 2017Maxim GroupDowngradesBuyHold

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