Analysts on Wall Street project that Shopify (SHOP) will announce quarterly earnings of $0.50 per share in its forthcoming report, representing an increase of 13.6% year over year. Revenues are projected to reach $3.58 billion, increasing 27.3% from the same quarter last year.
Over the last 30 days, there has been no revision in the consensus EPS estimate for the quarter. This signifies the covering analysts' collective reconsideration of their initial forecasts over the course of this timeframe.
Prior to a company's earnings release, it is of utmost importance to factor in any revisions made to the earnings projections. These revisions serve as a critical gauge for predicting potential investor behaviors with respect to the stock. Empirical studies consistently reveal a strong link between trends in earnings estimate revisions and the short-term price performance of a stock.
While investors typically use consensus earnings and revenue estimates as indicators of quarterly business performance, exploring analysts' projections for specific key metrics can offer valuable insights.
That said, let's delve into the average estimates of some Shopify metrics that Wall Street analysts commonly model and monitor.
Based on the collective assessment of analysts, 'Revenues- Merchant solutions' should arrive at $2.80 billion. The estimate indicates a change of +30.5% from the prior-year quarter.
Analysts' assessment points toward 'Revenues- Subscription solutions' reaching $777.54 million. The estimate indicates a change of +16.8% from the prior-year quarter.
The combined assessment of analysts suggests that 'Gross Merchandise Volume (GMV)' will likely reach $119.96 billion. The estimate compares to the year-ago value of $94.46 billion.
The collective assessment of analysts points to an estimated 'Monthly Recurring Revenue (MRR)' of $199.05 million. Compared to the present estimate, the company reported $178.00 million in the same quarter last year.
The average prediction of analysts places 'Gross Profit- Merchant solutions' at $1.03 billion. The estimate compares to the year-ago value of $820.00 million.
Analysts forecast 'Gross Profit- Subscription solutions' to reach $633.57 million. Compared to the current estimate, the company reported $532.00 million in the same quarter of the previous year.
View all Key Company Metrics for Shopify here>>>
Over the past month, shares of Shopify have returned -33.9% versus the Zacks S&P 500 composite's -1.5% change. Currently, SHOP carries a Zacks Rank #3 (Hold), suggesting that its performance may align with the overall market in the near future. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .
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Shopify Inc. (SHOP): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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