Etsy (NASDAQ:ETSY) shares dropped Thursday despite first-quarter expectations beats, as the online marketplace’s second-quarter guidance left something to be desired.
The company posted first-quarter revenue of $640.9 million, up 11% year-over-year and topping expectations of $622 million. Earnings were $0.53 per share, down 12% from the same period a year earlier but above projections of $0.51 per share.
Gross merchandise sales, the value of items sold in all Etsy (NASDAQ:ETSY) marketplaces, improved 4.6% to $3.1 billion. That also beat Street estimates of $3.06 billion.
However, the company’s own second-quarter revenue projection of $615 million came in lower than the Street estimate of $627 million.
Etsy (NASDAQ:ETSY) stock fell more than 7% Thursday afternoon to $91.40.
Adding to investor fear was a note from Oppenheimer that warned of consumers decreasing their discretionary spending.
"Spend per buyer remains muted on reopening headwinds and macro (economic) pressure," the analyst said in a note to clients.
That said, the firm maintained its 'Outperform' rating and adjusted up its price target to $155 from $150.
Contact Andrew Kessel at andrew.kessel@proactiveinvestors.com
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