NEW YORK (TheStreet) -- Wayfair (W - Get Report) stock is gaining 5.31% to $42.62 on heavy trading volume on Thursday afternoon after the company reported financial results that exceeded expectations for the 2015 fourth quarter.

Before today's market open, the Boston-based home decor online retailer posted a non-GAAP loss of 7 cents per share, while analysts had estimated a loss of 14 cents per share for the latest quarter.

Revenue increased 81% year-over-year to $739.79 million for the quarter ended December 31, beating estimates of $679.08 million.

The average order value increased 8.8% year-over-year to $222, with 3.1 million orders delivered during the quarter.

"We look forward to making great strides in 2016 as we continue to build the Wayfair brand in the United States and ramp up our investment in Europe and Canada," CEO Niraj Shah said in a statement.

So far today, 2.91 million shares of Wayfair have exchanged hands, compared with its average daily volume on 1.06 million shares.

Separately, Wayfair has a "sell" rating and a letter grade of D+ at TheStreet Ratings because of the company's weaknesses, such as poor profit margins.

You can view the full analysis from the report here: W

TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author. 

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