Wayfair exceeds Wall Street’s third quarter profit and revenue estimates.

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Wayfair exceeds Wall Street’s third quarter profit and revenue estimates.
The e-commerce home retailer reported a net profit of £131.98 million.
The number of direct customers increased by 50.9 percent in the third quarter of the fiscal year.

Wayfair Inc. (NYSE: W) said on Tuesday that third quarter profits for the fiscal year were better than expected. In the previous quarter (Q2), Wayfair had seen massive year-over-year revenue growth of 84%, according to the report released in the first week of August.

Wayfair reported an increase of approximately 1% in expanded trading on Tuesday, after a 13% increase in pre-trade trading. Including the price action, the company’s shares are now trading at £210.70, down from a significantly lower price of £71 per share at the beginning of the year.

The share price had fallen in March to a low for the year to date of £18 per share. Trading shares online is easier than you might think. Find out how you can buy shares online in 2020.

Wayfair’s financial results for Q3 compared to analysts’ estimates

Wayfair said net profit for the third quarter was £131.98 million or £1.27 per share. In the same quarter last year, the e-commerce home retailer reported a loss of £207.27 million or £2.24 per share.

On an adjusted basis, the Boston-based company earned £1.75 per share in the last quarter. In terms of revenue, Wayfair reported £2.93 billion compared to a much lower £1.76 billion in the previous year.

According to FactSet, experts had predicted that the company would generate revenues of £2.79 billion in the third quarter. Their estimate of earnings per share was capped at 62.49 pence. In a separate news release from the U.S. on Tuesday Humana said third quarter revenues were 23.6% higher.

CEO Niraj Shah’s comments on Tuesday

Wayfair CEO Niraj Shah commented on the results report on Tuesday and said

“The category’s momentum is vibrant, demand is accelerating online, and we expect the home to be even more important than usual when it comes to celebrating the holidays this year”.

With 28.8 million direct customers, Wayfair added, the number of direct customers in the 3rd quarter showed annualized growth of 50.9%. 11.1 million or 71.9% of orders, the U.S. company said, were placed by regular customers. Wayfair said, however, that the average order value declined from £192.03 last year to £185.17 in the last quarter.

Wayfair’s stock market performance was only slightly positive last year, with an annual profit of almost 3%. At the time of writing this article, the American e-commerce company selling furniture and household goods has a market capitalization of £19.93 billion.

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