Etsy shares plunge 12% on decline in gross merchandise sales
By Jon Swartz
Etsy Inc.'s stock plunged 12% in after-hours trading Wednesday after the company posted quarterly results that included a decline in gross merchandise sales.
Etsy (ETSY) reported net income of $63 million, or 48 cents a share, for its first fiscal quarter, compared with $74.5 million, or 53 cents a share, in the comparable quarter a year ago.
Total revenue edged up to $645.9 million from $640.9 million in the year-ago quarter. Specifically, GMS - a key indicator of growth - declined 3.7% on a year-over-year basis to $2.99 billion.
The consensus of analysts surveyed by FactSet had forecast net income of 48 cents a share on revenue of $646 million.
"Our first-quarter performance, while in line with our guidance, was pressured by the challenging environment for consumer discretionary products, which continues to be a headwind to Etsy marketplace growth," Chief Executive Josh Silverman said in a statement announcing the results.
Shares of Etsy have tumbled 14% this year through Wednesday, while the benchmark S&P 500 index SPX is up 5%.
-Jon Swartz
This content was created by MarketWatch, which is operated by Dow Jones & Co. MarketWatch is published independently from Dow Jones Newswires and The Wall Street Journal.
(END) Dow Jones Newswires
05-01-24 2019ET
Copyright (c) 2024 Dow Jones & Company, Inc.-
4 Wide-Moat Stocks to Buy for the Long Term While They’re Undervalued Today
-
Markets Brief: Four Stocks Made Up 80% of the Gains. Can It Last?
-
Is It Time to Ditch Your Money Market Fund for Longer-Term Bonds?
-
What’s Happening In the Markets This Week
-
4 Reasons Why Today’s Stock Market Is Delivering Impressive Performance
-
What Does Nvidia’s Stock Split Mean for Investors?
-
5 Undervalued Stocks to Buy as Their Stories Play Out
-
Markets Brief: Return of the Meme Stocks
-
2 Undervalued Dividend Stocks the Best Managers Are Buying
-
Tesla: Shareholder Vote Reduces Key Person Risk
-
After Earnings, Is CrowdStrike Stock a Buy, a Sell, or Fairly Valued?
-
Adobe’s Strong Quarterly Results Drive Share Gains
-
What Does Broadcom’s Stock Split Mean for Investors?
-
5 Ultracheap Stocks to Buy With the Best Returns on Investment
-
Broadcom Earnings: AI Sales Growth Accelerates
-
Oracle Earnings: IaaS Signings More Than Make Up for Miss