On August 4, Wayfair surged 24.98% in regular trading, trading at $110.95/share, with turnover of $152 million. The rally was driven by the company's Q2 earnings report released before market open, which showed both revenue and profitability exceeding Wall Street expectations.
Wayfair reported Q2 adjusted earnings of $0.95 per diluted share, up 9.2% year-over-year, beating the analyst consensus estimate of $0.90. Revenue came in at $3.519 billion, representing 7.6% year-over-year growth and surpassing the Street estimate of $3.465 billion. Adjusted EBITDA rose 18% to $242 million, with margin expanding 60 basis points to 6.9%. Non-GAAP free cash flow reached $301 million, marking the highest level since 2020, underscoring continued improvements in earnings quality and cash generation.
Morgan Stanley previously maintained an Overweight rating on Wayfair with a $110 price target, citing the company as a long-term market share gainer with improving profitability and free cash flow dynamics amid a delayed replacement upcycle in the home furnishings category.
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