Wayfair Thrills Retail Crowd As Stock Soars Premarket On Big Q3 Earnings Beat

Wayfair Inc. ($W) shares surged nearly 14% pre-market on Friday, setting up to open at a three-month high following the company’s strong third-quarter earnings report. 

The online home goods retailer’s stock was among the top 10 trending tickers on Stocktwits by 8:00 am ET.

The company posted adjusted earnings of $0.22 per share, beating the FactSet consensus of $0.13. 

Revenue edged down by 2% to $2.884 billion, slightly above expectations of $2.875 billion. 

Net losses narrowed significantly to $74 million, or $0.60 per share, compared to $163 million, or $1.40 per share, a year earlier.

Despite a decline in active customers by 2.7% to 21.7 million, below the Wall Street estimate of 22.5 million, Wayfair saw a notable 4.4% increase in average order value, reaching $310, ahead of expectations of $298.68. 

"Q3 marked another proofpoint of resilience for Wayfair with further market share capture in the face of sustained challenges in the category. Once again, we navigated a dynamic consumer environment while driving further discipline on costs to achieve a mid-single-digit Adjusted EBITDA margin for the second quarter in a row,” said CEO Niraj Shah.

Retail traders on Stocktwits responded enthusiastically to the results, noting the potential for further price movement. 

One user commented on the possibility of trading volume picking up based on the pre-market surge, while another opined that the stock was “way oversold.” 

Wayfair’s stock remains down 30.6% year-to-date, in contrast to the S&P 500’s 19.6% rise.

For updates and corrections, email newsroom@stocktwits.com

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