Etsy (ETSY) - Get Free Report shares plunged in after-hours trading Wednesday, as the online arts-and-crafts retailer reported slowing revenue growth for the second quarter and weaker-than-expected guidance.
Revenue climbed 23% to $528.9 million from $428.7 million a year ago. That topped the FactSet analyst consensus of $525.5 million for the latest quarter.
But sales growth doubled for each of the prior four quarters, according to CNBC. The pandemic benefit appears to have waned for the company.
Etsy estimated revenue of $500 million to $525 million for the current quarter. The midpoint of that range would produce an increase of 13.5% from a year earlier. The StreetAccount analyst consensus called for revenue of $527.5 million, CNBC reports.
Etsy shares recently stood at $172.80, down 14%. The stock rose 6% during the regular trading session Wednesday, but it has slipped 4% over the past six months.
Getting back to the second quarter, Etsy’s net income totaled $98.3 million, or 68 cents a share, versus $96.4 million, or 75 cents a share last year. The FactSet analyst consensus called for 64 cents in the latest quarter.
Etsy executives expressed satisfaction with the results. “We’re demonstrating just how many purchase occasions Etsy sellers can meet in truly delightful ways, attracting millions of new buyers and engaging our customers more than ever,” said Chief Executive Josh Silverman.
TheStreet.com founder Jim Cramer recently expressed support for the company. Small businesses are the backbone of the U.S. economy, he said, and investors should look to companies that support them, like Etsy.