Stock Story -
Secondhand luxury marketplace The RealReal (NASDAQ: NASDAQ:REAL) will be reporting earnings tomorrow afternoon. Here's what to look for.
The RealReal beat analysts' revenue expectations by 3.3% last quarter, reporting revenues of $143.8 million, up 1.3% year on year. It was a slower quarter for the company, with a decline in its users and slow revenue growth. It reported 922,000 users, down 9.1% year on year.
Is The RealReal a buy or sell going into earnings? Find out by reading the original article on StockStory, it's free.
This quarter, analysts are expecting The RealReal's revenue to grow 6.9% year on year to $139.9 million, a reversal from the 15.3% decrease it recorded in the same quarter last year. Adjusted loss is expected to come in at -$0.14 per share.
The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. The RealReal has missed Wall Street's revenue estimates three times over the last two years.
Looking at The RealReal's peers in the online marketplace segment, some have already reported their Q2 results, giving us a hint as to what we can expect. MercadoLibre (NASDAQ:MELI) delivered year-on-year revenue growth of 41.5%, beating analysts' expectations by 8.3%, and Remitly (NASDAQ:RELY) reported revenues up 30.9%, topping estimates by 1.5%. MercadoLibre traded up 10.7% following the results while Remitly was also up 3.7%.
Read the full analysis of MercadoLibre's and Remitly's results on StockStory.
Inflation progressed towards the Fed's 2% goal at the end of 2023, leading to strong stock market performance. 2024 has been a bumpier ride as the market switches between optimism and pessimism around rate cuts thanks to mixed inflation data, and while some of the online marketplace stocks have fared somewhat better, they have not been spared, with share prices down 4.9% on average over the last month. The RealReal is down 5.5% during the same time and is heading into earnings with an average analyst price target of $3.8 (compared to the current share price of $3.26).
![Earnings To Watch: The RealReal (REAL) Reports Q2 Results Tomorrow](https://d68-invdn-com.investing.com/content/pic788f15a3ae1981fbe967926758a7a9ca.jpeg)