What's Going On With Etsy Stock Thursday?

Etsy Inc ETSY shares are trading lower Thursday on the heels of the company's third-quarter results. Several analysts also lowered price targets on the stock following the print.

• Q3 Revenue: $636.3 million missed estimates of $640.566 million
• Q3 EPS: 64 cents beat estimates of 51 cents

Consolidated GMS (gross merchandise sales) totaled $3 billion in the quarter, up 1.2% year-over-year. Etsy marketplace GMS was up 1% year-over-year to $2.7 billion.

Headwinds to consolidated GMS included the macroeconomic environment, which impacted consumer discretionary product spending, as well as a small headwind from the mid-quarter divestiture of Elo7.

Etsy expects fourth-quarter GMS to decline in the low-single-digit range year-over-year. If trends worsen, Etsy could see a mid-single-digit decline. If trends improve, GMS could be flat or even up slightly year-over-year, the company said. 

"Etsy's consolidated results were in line with expectations for modest top line growth and very strong profitability. While we are undoubtedly operating in a challenging environment for spending on consumer discretionary items, we believe that we are at least holding our share gains in our top categories," said Josh Silverman, CEO of Etsy.

See Also: E-commerce Platform Shopify' Soars On Solid Q3, Gross Merchandise Volume Hits $56.2B

Analyst Changes: 

• Needham analyst Anna Andreeva maintained Etsy with a Buy and lowered the price target from $130 to $85.
• Goldman Sachs analyst Alexandra Steiger maintained Etsy with a Buy and lowered the price target from $96 to $84.
• Wedbush analyst Seth Basham maintained Etsy with a Neutral and lowered the price target from $70 to $60.

ETSY Price Action: Etsy shares were down 2.51% at $59.14 at the time of publication, according to Benzinga Pro.

Photo: TImor from Pixabay.