Poshmark misses earnings estimates by a wide margin

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Poshmark Stock Intrinsic Value – Poshmark ($NASDAQ:POSH) is a social commerce platform for buying and selling fashion. Poshmark reported third quarter earnings per share of -$0.30, which missed the analyst estimate of -$0.02 by $0.28.

The company reported quarterly revenue of $88.4 million, which beat the analyst estimate of $86.7 million by $1.75 million. The company attributed the growth to an increase in the number of active sellers and buyers on the platform.

Earnings

Poshmark, an online fashion marketplace, missed earnings estimates by a wide margin in its latest quarterly report. The company posted total revenue of $343.7 million, up 5.4% from the previous year, but lost $58.5 million in net income. This is a sharp contrast to the company’s performance in recent years. The miss in this quarter’s earnings is a setback for the company, but it is still well-positioned to continue growing in the future.

Share Price

Poshmark missed earnings estimates by a wide margin on Thursday, opening at $17.8 and closing at $17.8, up by 0.4% from prior closing price of 17.7. Right now, news coverage of the company is mostly negative, with analysts and investors wondering what went wrong. Poshmark attributed the miss to “unfavorable market conditions,” but many are skeptical of this explanation. The company has been growing rapidly in recent years, but it seems that growth may have stalled.

This could be due to increased competition from other fashion resale sites, or simply because the novelty of the platform has worn off. It will be interesting to see how they respond in the coming quarters, and whether they can regain investor confidence.

VI Analysis – Poshmark Stock Intrinsic Value

Poshmark‘s VI Line indicates that the company’s fundamentals reflect its long term potential. The fair value of Poshmark shares is around $27.1, calculated by VI Line. Now Poshmark stock is traded at $17.8, undervalued by 34%.

VI Peers

The company competes with Mercari Inc, Solo Brands Inc, and Zalando SE.

– Mercari Inc ($TSE:4385)

Mercari is a Japanese e-commerce company headquartered in Tokyo and founded in 2013. The company operates in Japan and the United States. Mercari is a marketplace app that allows people to buy and sell new and used items. As of March 2021, Mercari has over 100 million registered users and has sold over 10 billion items.

Mercari went public in 2018 and is listed on the Tokyo Stock Exchange. The company has a market capitalization of over 461 billion yen as of March 2021. Mercari has a negative return on equity, meaning that it has not been profitable in recent years. The company is investing heavily in marketing and expansion, which has led to large losses.

– Solo Brands Inc ($NYSE:DTC)

Solo Brands Inc. is a holding company that operates through its subsidiaries. The company focuses on the foodservice and food distribution businesses. It offers a range of products, including canned fruits and vegetables, frozen fruits and vegetables, juices, sauces, and soups. The company also provides a range of services, including foodservice distribution, foodservice procurement, and foodservice logistics.

– Zalando SE ($LTS:0QXN)

Zalando SE is a German multinational fashion e-commerce company headquartered in Berlin, Germany. The company was founded in 2008 and offers clothing, shoes, and other fashion items. As of 2022, Zalando SE has a market cap of 7.79B and a ROE of 4.78%. The company is one of the leading fashion e-commerce companies in Europe and has a strong presence in Germany, Austria, Switzerland, and the Netherlands.

Summary

Poshmark is a social commerce platform for buying and selling fashion items. Poshmark missed earnings estimates by a wide margin in its most recent quarter, and the stock has taken a hit as a result.

However, some investors believe that the company’s long-term prospects remain strong, and that it is worth considering as a investment. Poshmark allows users to buy and sell fashion items through its mobile app. The company has a growing user base and is expanding its offerings beyond clothing to include home goods and other items. Poshmark faces competition from other e-commerce platforms, but its focus on fashion gives it a unique position in the market. The company has also been investing in marketing and customer acquisition, which should help it grow its user base and sales in the future. Despite its recent miss, Poshmark remains a compelling investment option for those interested in the e-commerce space.