With Q3 earnings season all but over, investors can rejoice in the gains that were reported during the quarter. Earnings and revenue came in higher than a year earlier with future estimates expected to build on this success. For the fourth quarter, FactSet estimates earnings growth of S&P 500 companies to touch 3.3% with revenue growth hovering around 5%. This would mark the first time the index posted consecutive quarters of growth in about 2 years. So far a handful of companies look like they’ll shine next quarter but none more than Etsy, Tesla, Alcoa, Nvidia and Netflix. According to the Estimize data this group of companies are exhibiting the telltale signs of an earnings beat: heavy upward revisions activity, strong history of topping analysts estimates, and consist year over year growth.

Etsy, Inc (ETSY) Information Technology – Internet Software & Services

While many online retailers have struggled to compete with Amazon (AMZN), that hasn’t been the case for Etsy. Etsy’s niche marketplace of handmade arts and crafts has found its footing in the rapidly evolving retail space. Etsy has delivered better than expected results for 3 of the past 4 quarters and year-to-date the stock is up 52%. During the third quarter, management increased guidance for many key financial metrics such as gross merchandise sales, revenue,gross margin and adjusted EBITDA. This is a clear signal that its ongoing initiatives and acquisitions continue to improve financial performance. Furthermore, Etsy agreed to acquire AI startup, Blackbird Technologies, in September, a move that will bolster its search capabilities. Early estimate activity suggest Etsy will be one of the best performers for the upcoming fourth quarter. Analysts at Estimize are calling for earnings per share of 7 cents, 121% greater than Wall Street estimates and 175% higher than a year earlier. Revenue for the period is forecasted to jump 23% to $110.59 million, marking a slight slowdown from previous results.

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