Market Spotlight: Etsy Earnings in Focus Today

Etsy Up NextUS earnings season continues today and among the key names reporting, iconic e-commerce Etsy will be one of the key focus points for traders. On the back of a Q3 earnings miss, traders will be looking to see whether the company’s performance rebounded in Q4 or worsened. On the numbers front, Wall Street is looking for EPS of $0.08 on revenues of $755.41 million. This would be a solid rebound from Q3, if seen, and should help shore up the company’s stock price which has been sliding over recent weeks, now down around 16% from highs.  Negative Citron Research ReportAlong with the weaker-than-forecast Q3 earnings report, Etsy shares have also bene hit recently by a report from Citron Research claiming that the company isn’t taking a strong enough stance on counterfeit goods being sold on its website. Looking at the bullish forecasts for Q4 its clear that the company is expecting holiday demand to have driven sales higher ahead of year-end. With decent retail activity seen elsewhere, this is a reasonable forecast. The company has seen several bullish analyst revisions recently, suggesting upside risks into the release today.Technical ViewsEtsyThe reversal lower from the recent highs above 141.99 has seen Etsy stock breaking down out of the bull channel as the correction deepens. With momentum studies flipped bearish now, the focus is on a further push lower towards 112.67 level which will be the big test for the stock. Bulls need to defend this level to maintain the broader upside focus.