Wayfair (W) Q1 Loss Wider Than Anticipated, Revenues Beat
Zacks Investment Research | May 06, 2018 09:38PM ET
Wayfair Inc. (NYSE:W) reported first-quarter 2018 non-GAAP loss of 91 cents per share, wider than the Zacks Consensus Estimate loss of 86 cents. The company had incurred a loss of 48 cents a year ago and 58 cents in the preceding quarter.
Total revenues of $1.4 billion in the first quarter, increased 46.2% year over year but declined 2.7% on a sequential basis. The figure surpassed the Zacks Consensus Estimate of $1.35 billion.
The year-over-year increase was driven by strengthening direct retail business across the U.S. and international regions.
Following the company’s earnings release on May 2, its shares gained 8.2%. Moreover, Wayfair’s shares have returned 56.7% over a year, outperforming the Wayfair Inc. Quote
Balance Sheet & Cash Flow
As of Mar 31, 2018, cash, cash equivalents and short-term investments were $582.1 million, down from $620 million as of Dec 31, 2017. Accounts receivables were $31.9 million, declined from $37.9 million in the last reported quarter.
Cash used from operations was $13.1 million in the first quarter. The company’s capital expenditure was $35 million and $13 million was spent on site and software development. Free cash flow was ($47.6) million compared with $1.4 million in the previous quarter.
Guidance
For the second-quarter of 2018, Wayfair anticipates total revenues to lie in a range of $1.558-$1.592 billion. The Zacks Consensus Estimate for revenues is currently pegged at $1.5 billion.
The company expects direct retail revenues to lie in a range of $1.54-$1.57 billion, reflecting year-over-year growth of 40-43%. This includes expected growth in U.S. direct retail revenues of 35% to 37% and that in international segment between 80% and 90%.
Further, other revenues are expected between $13 million and $17 million.
Additionally, adjusted EBITDA margins are expected to be negative due to increasing ad spending. The guided range for it is 2.1-2.4%.
Zacks Rank and Stocks to Consider
Wayfair currently carries a Zacks Rank #4 (Sell)
A few better-ranked stocks in the broader technology sector are Micron Technology (NASDAQ:MU) , Nice (NASDAQ:NICE) and Agilent Technologies (NYSE:A) .
While Micron Technology and Nice sport a Zacks Rank #1 (Strong Buy), Agilent Technologies carries a Zacks Rank #2 (Buy). You can see Zacks Investment Research
Get The News You Want