Etsy's Stock Rises 4% After Earnings, Revenue Beat Expectations

After reporting quarterly results that exceeded analyst estimates for revenue and earnings, shares of e-commerce company Etsy Inc. (ETSY, -6.81%) rose quickly in extended trading on Wednesday. 

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Etsy's net earnings for the fiscal first quarter were $74.5 million, or 53 cents per share, compared to $86.1 million, or 60 cents per share, in the same period last year. 

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However, adjusted earnings were 60 cents per share. The company's revenue increased 11% to $640.9 million from $579.3 million a year ago. On average, analysts surveyed by FactSet had expected earnings of 51 cents per share on revenue of $622 million. 

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Etsy's CEO, Josh Silverman, stated that the company was pleased to deliver solid top- and bottom-line performance in the first quarter, maintaining the majority of its pandemic gains despite challenging macroeconomic headwinds.

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 Etsy expects second-quarter revenue between $590 million and $640 million, which is in line with analysts' $627 million forecast. Although Etsy's shares initially surged by 11% in after-hours trading, they closed up 4% in the extended session on Wednesday, after remaining flat at $98.97 during the regular session. 

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The company's shares have declined 17% year-to-date, while the broader S&P 500 index (SPX, -0.93%) has increased by 6.5%.

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