Why Wayfair Shares Are Rising Today
Portfolio Pulse from Nabaparna Bhattacharya
Wayfair Inc. (NYSE:W) shares rose after reporting a Q4 adjusted loss per share of $(0.11), beating Wall Street's expectation of a $(0.16) loss. Q4 revenue was $3.114 billion, a 0.4% increase year over year, slightly above the consensus of $3.106 billion. U.S. net revenue grew by 0.9%, while international net revenue declined by 2.7%. Active customers increased to 22.4 million, and orders delivered rose by 2.7%. The company highlighted a 3% Adjusted EBITDA Margin and positive Adjusted EBITDA and Free Cash Flow for the third consecutive quarter, with a significant improvement in Free Cash Flow by over one billion dollars compared to 2022. Shares surged 8.17% to $52.77.
February 22, 2024 | 3:00 pm
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Wayfair Inc. reported a better-than-expected Q4 adjusted loss and revenue, leading to an 8.17% increase in its stock price.
Wayfair's stock price increase is directly attributed to its Q4 earnings report, which surpassed Wall Street's expectations in terms of both adjusted loss per share and revenue. The positive financial performance, especially in a challenging macro environment, and the significant improvement in Free Cash Flow compared to 2022, likely contributed to investor optimism, resulting in the stock price surge.
CONFIDENCE 95
IMPORTANCE 90
RELEVANCE 100