Shares of Etsy (NASDAQ: ETSY) are surging more than 12% in after-hours trading after reporting earnings for its third quarter of Fiscal Year 2022. Adjusted earnings per share came in at $0.58, which beat analysts’ consensus estimate of $0.37 per share.
Sales increased 11.7% year-over-year, with revenue hitting $594.47 million. This was also higher than the $564.2 million that analysts were looking for.
However, the company demonstrated operating deleverage since its EBITDA margin contracted by 5% to 28%. This equates to an EBITDA of $167.8 million.
Is ETSY Stock a Buy Now?
ETSY has a Moderate Buy consensus rating based on five Buys, five Holds, and zero Sells assigned in the past three months. The average ETSY stock price target of $111.20 implies 27.06% upside potential.