Poshmark Inc POSH is trading significantly lower Wednesday after the company announced worse-than-expected third-quarter financial results and issued guidance below estimates.
Poshmark reported a quarterly earnings loss of 9 cents per share, which came in below the estimate for a loss of 7 cents per share. The company reported quarterly revenue of $79.65 million, which came in below the estimate of $82.69 million.
Poshmark expects fourth-quarter revenue to be in a range of $80 million to $82 million versus the estimate of $85.18 million.
"Next month marks a decade since Poshmark's founding, sparking a new era that puts social engagement and sustainability at the forefront of the shopping experience. Our asset-light model, which is both adaptable and responsive to changing consumer demands and insulated from supply chain disruption, is uniquely positioned to thrive in the current environment," said Manish Chandra, founder and CEO of Poshmark.
Analyst Assessment: Multiple analyst firms weighed in on the stock following Poshmark's financial results:
- William Blair analyst Ralph Schackart downgraded Poshmark from an Outperform rating to a Market Perform rating.
- MKM Partners analyst Roxanne Meyer downgraded Poshmark from a Buy rating to a Neutral rating and lowered the price target from $50 to $21.
- Raymond James analyst Aaron Kessler maintained Poshmark with an Outperform rating and lowered the price target from $49 to $29.
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POSH Price Action: Poshmark is making new 52-week lows during Wednesday's trading session.
The stock was down 28.20% at $17.61 at time of publication.
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