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The Zacks Consensus Estimate for fourth-quarter revenues is currently pegged at $1.34 billion, suggesting growth of 37.4% from the year-ago quarter’s reported figure.
The consensus mark for earnings is pegged at $1.33 per share, indicating year-over-year growth of 15.82%.
The company’s earnings beat the Zacks Consensus Estimate in three of the trailing four quarters and missed the same in one, delivering an earnings surprise of 70.03%, on average.
Let’s see how things have shaped up for the upcoming announcement.
Factors to Note
Shopify’s fourth-quarter 2021 results are expected to suffer from supply chain delays, as well as increased costs for materials, labor, shipping or advertising.
Higher investments in product development and fulfillment platform are likely to limit margin expansion in the near term.
Nevertheless, Shopify is benefiting from growth induced by e-commerce boom in its merchant base.
Markedly, Shopify announced a record-setting Black Friday/Cyber Monday weekend with sales of $6.3 billion globally from the start of Black Friday in New Zealand through the end of Cyber Monday in California. This is a 23% increase in sales compared with Shopify's 2020 Black Friday / Cyber Monday weekend.
Robust uptick in Shopify Shipping, Shopify Payments and Shopify Capital is expected to have aided top-line growth in the to-be-reported quarter.
The company has been focused on winning merchants on a regular basis based on product offerings, including Shop Pay and Shop Pay Installments, as well as features like end-to-end order tracking.
Moreover, solid adoption of new merchant-friendly applications is expected to have driven top-line growth.
What Our Model Says
According to the Zacks model, the combination of a positive Earnings ESP and Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here.
Shopify has an Earnings ESP of -0.84% and a Zacks Rank #3. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks to Consider
Here are a few companies you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat in their upcoming releases:
Image: Bigstock
Shopify (SHOP) to Report Q4 Earnings: What's in the Cards?
Shopify (SHOP - Free Report) is scheduled to report fourth-quarter 2021 results on Feb 16.
The Zacks Consensus Estimate for fourth-quarter revenues is currently pegged at $1.34 billion, suggesting growth of 37.4% from the year-ago quarter’s reported figure.
The consensus mark for earnings is pegged at $1.33 per share, indicating year-over-year growth of 15.82%.
The company’s earnings beat the Zacks Consensus Estimate in three of the trailing four quarters and missed the same in one, delivering an earnings surprise of 70.03%, on average.
Shopify Inc. Price and EPS Surprise
Shopify Inc. price-eps-surprise | Shopify Inc. Quote
Let’s see how things have shaped up for the upcoming announcement.
Factors to Note
Shopify’s fourth-quarter 2021 results are expected to suffer from supply chain delays, as well as increased costs for materials, labor, shipping or advertising.
Higher investments in product development and fulfillment platform are likely to limit margin expansion in the near term.
Nevertheless, Shopify is benefiting from growth induced by e-commerce boom in its merchant base.
Markedly, Shopify announced a record-setting Black Friday/Cyber Monday weekend with sales of $6.3 billion globally from the start of Black Friday in New Zealand through the end of Cyber Monday in California. This is a 23% increase in sales compared with Shopify's 2020 Black Friday / Cyber Monday weekend.
Robust uptick in Shopify Shipping, Shopify Payments and Shopify Capital is expected to have aided top-line growth in the to-be-reported quarter.
The company has been focused on winning merchants on a regular basis based on product offerings, including Shop Pay and Shop Pay Installments, as well as features like end-to-end order tracking.
Moreover, solid adoption of new merchant-friendly applications is expected to have driven top-line growth.
What Our Model Says
According to the Zacks model, the combination of a positive Earnings ESP and Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here.
Shopify has an Earnings ESP of -0.84% and a Zacks Rank #3. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks to Consider
Here are a few companies you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat in their upcoming releases:
Keysight Technologies (KEYS - Free Report) has an Earnings ESP of +2.17% and is Zacks #2 Ranked. You can see the complete list of today’s Zacks #1 Rank stocks here.
KEYS shares have underperformed the Zacks Computer & Technology sector in the past year. Keysight returned 7.6% against the sector’s decline of 2.3%.
The company is set to report first-quarter 2022 on Feb 17, 2022.
Applied Materials (AMAT - Free Report) has an Earnings ESP of +0.93% and carries a Zacks Rank of 2 at present.
AMAT stock returned 13.6% in the past year. Applied Materials is set to report first-quarter 2022 results on Feb 16, 2022.
Fastly (FSLY - Free Report) has an Earnings ESP of +2.36% and a Zacks Rank #2.
Fastly shares are down 73.6% in the past year. Fastly is set to report fourth-quarter 2021 results on Feb 16, 2022.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.