Zacks Research Has Pessimistic View of Wayfair Q1 Earnings

Key Points

• Zacks Research lowered its Q1 2027 EPS estimate for Wayfair to a loss of $0.05 per share from a prior loss estimate of $0.04, signaling a slightly more pessimistic outlook. The firm also projected FY2027 EPS of $0.97.
• Wayfair’s last reported quarter beat revenue expectations, with EPS of $0.26 matching estimates and revenue of $2.93 billion topping forecasts. However, profitability remained weak, with a negative net margin of 2.41% and negative return on equity of 2.20%.
• Wall Street remains broadly constructive but mixed on the stock, with an average “Moderate Buy” rating and a consensus price target of $99.68. Several firms recently trimmed targets, reflecting caution even as many analysts still rate Wayfair a buy.

Wayfair Inc. (NYSE:W - Free Report) - Equities researchers at Zacks Research cut their Q1 2027 earnings per share (EPS) estimates for shares of Wayfair in a research note issued to investors on Friday, June 26th. Zacks Research analyst Team now forecasts that the company will post earnings of ($0.05) per share for the quarter, down from their previous forecast of ($0.04). The consensus estimate for Wayfair's current full-year earnings is $0.63 per share. Zacks Research also issued estimates for Wayfair's Q3 2027 earnings at $0.24 EPS and FY2027 earnings at $0.97 EPS.

Wayfair (NYSE:W - Get Free Report) last announced its quarterly earnings data on Thursday, April 30th. The company reported $0.26 earnings per share (EPS) for the quarter, meeting analysts' consensus estimates of $0.26. Wayfair had a negative net margin of 2.41% and a negative return on equity of 2.20%. The firm had revenue of $2.93 billion during the quarter, compared to analyst estimates of $2.89 billion. During the same quarter in the prior year, the firm posted $0.10 earnings per share. Wayfair's quarterly revenue was up 7.4% on a year-over-year basis.

A number of other brokerages also recently issued reports on W. TD Cowen cut their price target on shares of Wayfair from $88.00 to $75.00 and set a "hold" rating for the company in a report on Thursday, April 30th. Canaccord Genuity Group decreased their price objective on Wayfair from $125.00 to $115.00 and set a "buy" rating on the stock in a report on Friday, May 1st. Truist Financial set a $99.00 price objective on Wayfair in a research report on Monday, June 8th. Wells Fargo & Company cut their target price on Wayfair from $125.00 to $100.00 and set an "overweight" rating for the company in a research note on Friday, May 1st. Finally, Royal Bank Of Canada reduced their target price on Wayfair from $92.00 to $76.00 and set a "sector perform" rating on the stock in a research report on Thursday, April 30th. One research analyst has rated the stock with a Strong Buy rating, eighteen have issued a Buy rating, ten have given a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat.com, Wayfair currently has an average rating of "Moderate Buy" and a consensus target price of $99.68.

Wayfair Price Performance

NYSE:W opened at $95.43 on Tuesday. The firm has a market capitalization of $12.60 billion, a price-to-earnings ratio of -40.78, a PEG ratio of 4.97 and a beta of 3.02. The company's 50-day moving average is $73.82 and its two-hundred day moving average is $84.43. Wayfair has a 1-year low of $50.41 and a 1-year high of $119.98.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently modified their holdings of W. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. raised its holdings in shares of Wayfair by 29.0% in the 1st quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 67,023 shares of the company's stock valued at $2,147,000 after buying an additional 15,084 shares during the period. Prudential Financial Inc. boosted its holdings in Wayfair by 30.4% during the 2nd quarter. Prudential Financial Inc. now owns 7,328 shares of the company's stock valued at $375,000 after acquiring an additional 1,710 shares during the period. Northwestern Mutual Wealth Management Co. boosted its holdings in Wayfair by 12.3% during the 2nd quarter. Northwestern Mutual Wealth Management Co. now owns 2,462 shares of the company's stock valued at $126,000 after acquiring an additional 270 shares during the period. M&T Bank Corp acquired a new position in Wayfair in the 2nd quarter valued at about $262,000. Finally, EverSource Wealth Advisors LLC grew its position in Wayfair by 393.4% in the 2nd quarter. EverSource Wealth Advisors LLC now owns 819 shares of the company's stock valued at $42,000 after acquiring an additional 653 shares in the last quarter. 89.67% of the stock is currently owned by hedge funds and other institutional investors.

Insider Transactions at Wayfair

In related news, Director Steven Conine sold 112,861 shares of Wayfair stock in a transaction that occurred on Thursday, April 23rd. The shares were sold at an average price of $77.50, for a total value of $8,746,727.50. Following the completion of the sale, the director owned 436,212 shares in the company, valued at approximately $33,806,430. This trade represents a 20.55% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Jon Blotner sold 4,790 shares of Wayfair stock in a transaction that occurred on Thursday, April 2nd. The shares were sold at an average price of $72.19, for a total transaction of $345,790.10. Following the completion of the sale, the insider owned 111,158 shares of the company's stock, valued at $8,024,496.02. This trade represents a 4.13% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last three months, insiders have sold 244,790 shares of company stock worth $18,959,021. 18.44% of the stock is currently owned by insiders.

Wayfair News Roundup

Here are the key news stories impacting Wayfair this week:

• Positive Sentiment: Wayfair is getting fresh attention from multiple shopping articles highlighting steep discounts on patio sets, sleeper sofas, ovens, and other home goods, which points to active demand and could help support sales momentum. Wayfair’s 'most comfortable' patio furniture is on major sale this summer—shop 12 top-rated sets up to 70% off
• Positive Sentiment: Several articles featuring popular Wayfair items, such as hummingbird feeders and storage furniture, reinforce that the retailer is still driving consumer interest across categories. Discover Wayfair's $27 Hummingbird Feeder That Bird-Watchers Love
• Neutral Sentiment: A Seeking Alpha piece titled “Wayfair: A Better Business, But Not A Better Buy” suggests the company’s underlying business has improved, but the stock may already reflect much of that progress. Wayfair: A Better Business, But Not A Better Buy
• Neutral Sentiment: Independent research updates and earnings forecast notes do not appear to bring a major new catalyst, but they keep attention on Wayfair’s future profitability expectations. Zacks Research Predicts Wayfair's FY2028 Earnings NYSE: W

Wayfair Company Profile

Wayfair Inc NYSE: W is an e-commerce company focused on home furnishings and décor. Through its platform, Wayfair offers a broad assortment of furniture, lighting, home textiles, kitchenware and decorative accessories. The company's portfolio includes flagship sites such as Wayfair.com, as well as specialty retail brands like Joss & Main, AllModern, Birch Lane and Perigold, each catering to distinct design styles and price points.

Founded in 2002 by Niraj Shah and Steve Conine under the name CSN Stores, the business rebranded as Wayfair in 2011 and went public in 2014.

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