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Strength Seen in Lightspeed POS Inc. (LSPD): Can Its 15.7% Jump Turn into More Strength?

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Lightspeed POS Inc. (LSPD - Free Report) shares ended the last trading session 15.7% higher at $66.45. The jump came on an impressive volume with a higher-than-average number of shares changing hands in the session. This compares to the stock's 15.7% loss over the past four weeks.

The upswing in Lightspeed’s share price can be attributed to its impressive fourth-quarter fiscal 2021 results. Revenues jumped 127% year over year to $82.4 million and beat the Zacks Consensus Estimate by 18.8%. Recurring subscription and transaction-based revenues surged 137% year over year to $75.3 million.

Price and Consensus

Price Consensus Chart for LSPD


This company is expected to post quarterly loss of $0.25 per share in its upcoming report, which represents a year-over-year change of -56.3%. Revenues are expected to be $69.33 million, up 91.2% from the year-ago quarter.

Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements.

For Lightspeed POS Inc., the consensus EPS estimate for the quarter has remained unchanged over the last 30 days. And a stock's price usually doesn't keep moving higher in the absence of any trend in earnings estimate revisions. So, make sure to keep an eye on LSPD going forward to see if this recent jump can turn into more strength down the road.

The stock currently carries a Zacks Rank 3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

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