03:11 PM EDT, 07/24/2024 (MT Newswires) -- Wayfair ( W ) Q2 results are expected to be muted amid soft demand for home furnishings and prospects for conservative guidance on Q3 sales growth, Wedbush said Wednesday in a report.

"We see modest downside risk to our and consensus' [Q2] sales growth estimate," Wedbush said.

Wayfair's ( W ) "tight cost management" may limit downside risk to the consensus Q2 earnings before interest, taxes, depreciation, and amortization forecast of $170 million, and the Q3 EBITDA margin guide might be around consensus, Wedbush said.

Still, "big-ticket discretionary demand trends remain depressed, and the furniture retail sales deceleration in June suggests the industry is still bouncing along the bottom of this trough," Wedbush said.

Wedbush maintained its outperform rating on Wayfair's ( W ) stock with a price target of $70. Company results for Q2 are expected Aug. 1.

Wayfair ( W ) shares slumped 7.9% in recent trading Wednesday.

Price: 48.45, Change: -4.17, Percent Change: -7.92