Poshmark Stock Falls on Soft Guidance, Analysts See No Surprises in Report

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Shares of Poshmark (NASDAQ:POSH) are down almost 2% after the company offered a softer-than-expected quarterly revenue forecast.

Poshmark reported a loss per share of 29c on revenue of $89.1 million, which compares to the expected loss per share of 27c on revenue of 87.7 million.

For this quarter, the company said it expects to generate revenue between $85 million and $87 million, which is lower than the estimate of $88.2 million. Adjusted EBITDA is seen at a negative $9 million to $11 million, somewhere in line with the estimate of $9.67 million.

Poshmark said its marketplace rose 70% year-over-year to a record 57.5 billion social interactions in 12 months to June 30, 2022.

A Stifel analyst said the company delivered “better results, mixed guidance.” He raised the price target to $14 from the prior $12.

“Shares of Poshmark remain cheap on a relative basis trading at 1.3x EV/revenue (’23) though there are limited near-term growth catalysts. Uncertainty remains as investor wrestle with determining the normalized growth rate of the platform. We maintain our Hold rating,” the analyst said in a client note.

A Morgan Stanley analyst cut the price target to $16 from $17 after a “largely in-line Q2 and Q3 guide.” Schenk also reiterated an Equal Weight rating as “POSH remains a show-me story with limited catalysts.”

“While we do believe there is slight conservatism baked into the guide, and August has shown some seasonal improvement, the macro backdrop remains difficult and September comps get more difficult,” the analyst added.