Baird Remains Sidelined on Wayfair (W) Following 1Q Revenue Beat

Baird maintained a Neutral rating and $50.00 price target on Wayfair (NYSE: W) following the company's 1Q earnings report. Wayfair reported revenues of $747M, ahead of the consensus estimates of $695M and guidance of $600-$700M. The beat was driven by ongoing Direct segment growth in repeat orders and new customers. EBITDA and EPS were in-line/slightly below consensus expectations, with ad spend elevated internationally in addition to ongoing platform investments and new headcount.

Analyst Colin Sebastian commented, "Wayfair reported Q1 revenues well ahead of expectations ($747M vs. $695M consensus), driven by ongoing Direct segment growth in repeat orders and new customers, as Wayfair continues to carve-out impressive retail share gains in Home categories. Adjusted EBITDA margin of -2.9% was in line, as revenue upside was largely offset by elevated international ad spend/opex. Maintain Neutral rating, but continue with a positive bias as we await more clarity on normalized margins."

For an analyst ratings summary and ratings history on Wayfair click here. For more ratings news on Wayfair click here.

Shares of Wayfair closed at $35.99 yesterday.

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