What to Look for When Wayfair (W) Posts Q3 Results

Wayfair (W) is set to release its 2016 third quarter results before Tuesday's market open. Wall Street is expecting a wider loss than last year, but higher revenue year-over-year.

Analysts surveyed by FactSet are forecasting an adjusted loss of 59 cents per share on revenue of $845.90 million.

During the same quarter last year, the Boston-based online home goods retailer reported an adjusted loss of 13 cents per diluted share on revenue of $593.97 million.

Canaccord Genuity said Wayfair is "very attractive," but will have tough comparisons for two more quarters.

"Wayfair continues to execute on its strategy of becoming the largest online home goods retailer, and we are bullish on the opportunity," the firm wrote in an analyst note today.

"While its top line growth should remain strong, particularly in the seasonally strong Q3 and Q4 periods as the company becomes more savvy at offering and promoting holiday sales, it will be facing continued tough comps from rapid direct retail acceleration in 2015," Canaccord added.

Profitability will likely continue to be muted for the rest of the year as the company invests in improving logistics and taking more freight operations in-house, according to the firm.

International expansion is also continuing, which Canaccord estimates is the bulk of the company's total EBITDA loss currently.

"With the stock under significant pressure since the company signaled this investment cycle last quarter, we believe an in-line quarter and reiteration of the Q4 EBITDA breakeven target should be enough to help the stock," Canaccord said.

The firm has a "buy" rating and $55 price target on Wayfair shares.

The stock was up more than 3% in mid-afternoon trading today.

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