Etsy Earnings Preview

Etsy ETSY will be releasing its next round of earnings this Thursday, February 25. For all of the relevant information, here is your guide for Thursday's Q4 earnings announcement.

Net Income, Earnings, And Earnings Per Share

Earnings and EPS are useful metrics of profitability. Total earnings also known as net income is equal to total revenue minus total expenses. Dividing net income by the total number of shares outstanding yields EPS.

Earnings And Revenue

Wall Street expects EPS of $0.58 and sales around $511.38 million. In the same quarter last year, Etsy reported earnings per share of $0.25 on sales of $270.00 million.

What Are Analyst Estimates And Earnings Surprises, And Why Do They Matter?

Analysts who cover this company will publish forward-looking estimates of its revenue and EPS each quarter. Averaging together every EPS and revenue prediction that each analyst makes about a company in a quarter yields the "consensus estimates." A company posting earnings or revenue above or below the consensus estimate is known as an "earnings surprise" and may move the stock by a considerable margin.

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If the company were to report earnings in line when it publishes results Thursday, quarterly profit would be up 132.0%. Revenue would be have grown 89.4% from the same quarter last year. Here is how the company's EPS has stacked up against analyst estimates in the past:

Stock Performance

Over the last 52-week period, shares are up 260.94%. Given that these returns are generally positive, long-term shareholders can relax going into this earnings release. Long-term shareholders are already enjoying 12-month gains prior to the announcement.

Do not be surprised to see the stock move on comments made during its conference call. Etsy is scheduled to hold the call at 17:00:00 ET and can be accessed here.