Wayfair Stock Tumbles on 4Q Revenue Forecast

Updates from 7:44 a.m. EST with guidance.

Shares of Wayfair (W) were retreating 8.1% to $30.92 on heavy trading volume midday Tuesday after the company gave downbeat revenue guidance for the 2016 fourth quarter on its conference call.

The Boston-based online home goods retailer sees fourth-quarter revenue between $920 million and $960 million, which fell short of analysts' expectations. The FactSet consensus estimate is for $1.03 billion.

Additionally, Wayfair expects direct retail revenue in the range of $890 million to $925 million, also below analysts' projections. Wall Street is looking for $995 million, according to FactSet.

Direct retail revenue consists of sales generated primarily through the sites of the company's brands, which include Wayfair, Joss & Main, AllModern, DwellStudio and Birch Lane.

CFO Michael Fleisher said the company is being conservative in its guidance. He noted on the quarterly call that Wayfair is extremely cognizant that many companies in the consumer retail world have discussed softening of the consumer spending environment.

Fleisher said it is difficult to discern what impact that is having on its business as there remains a systematic movement from brick-and-mortar to online.

The stock was up more than 8% in pre-market trading today after the company reported better-than-expected results for the 2016 third quarter.

Wayfair posted an adjusted loss of 54 cents per share, smaller than the loss of 59 cents per share projected by Wall Street. Revenue climbed 45% to $861.53 million year-over-year and surpassed analysts' estimates of $845.90 million.

Direct retail revenue rose 52.7% to $832.4 million from last year, while the number of active customers in the company's direct retail business jumped 60.4% to 7.4 million year-over-year.

"We are very pleased to report yet another strong quarter of rapid growth as we continue to gain significant market share," CEO Niraj Shah said in a statement.

More than 5.41 million of the company's shares traded so far today compared to its average 30-day volume of 1.14 million shares.

More from Stocks

The Stock Market Has Every Reason to See a Fresh Rally

The Stock Market Has Every Reason to See a Fresh Rally

3 Simple Tips on Investing From TheStreet's Jim Cramer

3 Simple Tips on Investing From TheStreet's Jim Cramer

Video: There Are Some Big Changes Coming to the PGA Championships in 2019

Video: There Are Some Big Changes Coming to the PGA Championships in 2019

Tesla's Supercharger Network Is Booming -- Here's Why That's a Concern

Tesla's Supercharger Network Is Booming -- Here's Why That's a Concern

Attention 60 Minutes: Google Isn't the Only Big-Tech Monopoly

Attention 60 Minutes: Google Isn't the Only Big-Tech Monopoly