- Wayfair (NYSE:W) is now higher in premarket trading after an early decline following the Q4 earnings report.
- During the earnings call, Wayfair management stated quarter-to-date revenue is trending at a mid 50% pace to mark an acceleration from the 45% growth in Q4. The consensus estimate for Q1 revenue growth is +43%.
- Shares of Wayfair are up 2.55% to $264.53. Wayfair was down 7% about an hour ago.
See, there's a good example. W is a FURNITURE store. Due to the pandemic and people's inability to go shopping and W being big on-line, they got a nice bump in 2020 from $9.1Bn to $14.2Bn in sales - very impressive. "Profits" on the other hand, $500M and this is the first time they've ever made a profit and guidance for this year is $250M yet the stock has gone from $150 to $300, which is $25Bn in market cap or 50 times best earnings.
| Year End 31st Dec | 2014 | 2015 | 2016 | 2017 | 2018 | 2019 | TTM | 2020E | 2021E | CAGR / Avg |
|---|---|---|---|---|---|---|---|---|---|---|
|
$m
|
1,319 | 2,250 | 3,380 | 4,721 | 6,779 | 9,127 | 13,008 | 14,219 | 16,009 | 47.2% |
|
$m
|
-148 | -81.3 | -196 | -235 | -473 | -930 | -45.6 | |||
|
$m
|
-148 | -77.4 | -194 | -245 | -504 | -985 | -169 | 486 | 250 | |
|
$
|
-2.97 | -0.925 | -2.29 | -1.99 | -5.63 | -10.7 | -2.73 | |||
|
$
|
-2.97 | -0.925 | -2.29 | -1.91 | -5.64 | -10.7 | -2.70 | 4.44 | 2.40 | |
|
%
|
-46.0 | |||||||||
|
x
|
58.2 | 108 | ||||||||
|
|
1.38 | |||||||||
| Profitability | ||||||||||
There is no possible way they can repeat this growth and it's very unlikely they can even sustain what they have once things get back to normal.
