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Etsy, Inc.Stock Jumps On Roth Capital Upgrade

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Analysts at Roth Capital bumped their rating on Etsy stock from Sell to Neutral following its second quarter results

Etsy Inc (NASDAQ:ETSY) stock jumped as much as 11% in the opening minutes of today’s trading session, after analysts at Roth Capital bumped its rating on the company from Sell to Neutral. Shares of the company has already surged more than 60% since the start of fiscal year 2016 after hitting its 52-week low of $6.04 in early-February.

The company reported the finances of its second quarter of 2016, after the closing bell of yesterday’s trading session. Etsy managed to report solid earnings for the passed quarter, while the Street’s consensus was not met for the bottomline. The company revealed $85.3 million in total revenues, surpassing its $80.55 million consensus estimates. On the other end, adjusted loss per share (LPS) came in at 6 cents, missing the Street’s estimates by 5 cents.

Analysts at Roth Capital maintained its $14.25 twelve month price target on Etsy stock, following its second quarter earnings while issuing positive comments about the company’s solid FY16 revenue view. During the quarter, Etsy managed to expand its global customers reporting 1.7 million active sellers along with 26.1 million buyers.

Etsy chief executive officer, Chad Dickerson also commented on the company’s quarterly earnings call stating, “We accelerated our GMS growth and provided high impact services to help our creative entrepreneurs start, grow and manage their businesses. This continued focus and discipline led to growth across all of our key metrics and, as a result, we are raising our financial outlook for 2016.”

Roth Capital believes that the raised guidance hints at better-than-expected profitability in the second half of current year. The research firm highlighted company’s silence pertaining to Etsy’s growth margins in the second half of 2016 and believes that the overall growth in the aforementioned time period will be driven primarily by “conservatism than business fundamentals”.

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