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What's in Store for ContextLogic (WISH) in Q4 Earnings?
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ContextLogic Inc. is scheduled to report fourth-quarter 2021 results on Mar 1.
For the fourth quarter, the Zacks Consensus Estimate for revenues is pegged at $303.63 million, suggesting a decline of 61.8% from the year-ago quarter’s reported figure.
The Zacks Consensus Estimate for loss is pegged at 10 cents per share, which has been unchanged over the past 30 days. Notably, the company reported a loss of $3.04 per share in the prior-year quarter.
ContextLogic surpassed the Zacks Consensus Estimate in two of the trailing four quarters, while missing twice, delivering an average surprise of 7.2%.
On a sequential basis, revenues for the to-be-reported quarter are expected to be down primarily due to the ongoing reduction in advertising spending.
Weak momentum across the company’s Marketplace business, owing to its sluggishness in Core Marketplace and ProductBoost, is expected to have continued hurting its performance in the fourth quarter.
Nevertheless, the introduction of the merchant program, Wish Standards, which offers enhanced customer experience with priority placement in the feed, and commission discounts, is expected to have driven its customer momentum.
The launch of Wish Clips, which offers a video-first shopping experience on the Wish platform, is expected to have improvised the shopping experience.
Expanding payment options and the inclusion of the Buy Now, Pay Later offering through ContextLogic’s partnership with Klarna are expected to have contributed well.
An increasing number of merchants on the company’s platform is expected to have aided its fourth-quarter performance.
Apart from this, ContextLogic’s growing monetization efforts, deepening focus on lifetime value (LTV) users, and strong endeavors to bring more high-frequency products are likely to have driven the company’s quarterly performance.
ContextLogics’s strong Logistics business is anticipated to have contributed well to its overall revenues.
The solid adoption of the company’s end-to-end shipping solutions, bolstering shipping efficiencies, and a strong focus on the optimization of average Time-to-Door (TTD) are expected to have aided the performance of the Logistics business in the quarter under review.
However, mounting expenses, especially sales and marketing, due to rising digital advertising costs are anticipated to have hindered the margin expansion of the company in the soon-to-be-reported quarter.
What Our Model Says
Our proven model does not conclusively predict an earnings beat for ContextLogic this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
ContextLogic has an Earnings ESP of 0.00% and a Zacks Rank #4 (Sell).
Stocks to Consider
Here are some stocks that you may consider as our model shows that these have the right combination of elements to beat on earnings this season.
DICK’s is scheduled to release fourth-quarter fiscal 2022 results on Mar 8. The Zacks Consensus Estimate for DKS’ earnings is pegged at $3.39 per share, suggesting an increase of 39.5% from the prior-year reported figure.
BJ’s Wholesale Club (BJ - Free Report) has an Earnings ESP of +0.33% and a Zacks Rank #3 at present.
BJ’s Wholesale Club is set to report fourth-quarter fiscal 2021 results on Mar 3. The Zacks Consensus Estimate for BJ’s earnings is pegged at 75 cents per share, which suggests an increase of 7.14% from the prior-year reported figure.
Casey’s General Stores (CASY - Free Report) has an Earnings ESP of +15.39% and a Zacks Rank #3 at present.
Casey’s is scheduled to release third-quarter fiscal 2022 results on Mar 8. The Zacks Consensus Estimate for CASY’s earnings is pegged at $1.43 per share, which suggests an increase of 37.5% from the prior-year reported figure.
Image: Bigstock
What's in Store for ContextLogic (WISH) in Q4 Earnings?
ContextLogic Inc. is scheduled to report fourth-quarter 2021 results on Mar 1.
For the fourth quarter, the Zacks Consensus Estimate for revenues is pegged at $303.63 million, suggesting a decline of 61.8% from the year-ago quarter’s reported figure.
The Zacks Consensus Estimate for loss is pegged at 10 cents per share, which has been unchanged over the past 30 days. Notably, the company reported a loss of $3.04 per share in the prior-year quarter.
ContextLogic surpassed the Zacks Consensus Estimate in two of the trailing four quarters, while missing twice, delivering an average surprise of 7.2%.
ContextLogic Inc. Price and EPS Surprise
ContextLogic Inc. price-eps-surprise | ContextLogic Inc. Quote
Factors at Play
On a sequential basis, revenues for the to-be-reported quarter are expected to be down primarily due to the ongoing reduction in advertising spending.
Weak momentum across the company’s Marketplace business, owing to its sluggishness in Core Marketplace and ProductBoost, is expected to have continued hurting its performance in the fourth quarter.
Nevertheless, the introduction of the merchant program, Wish Standards, which offers enhanced customer experience with priority placement in the feed, and commission discounts, is expected to have driven its customer momentum.
The launch of Wish Clips, which offers a video-first shopping experience on the Wish platform, is expected to have improvised the shopping experience.
Expanding payment options and the inclusion of the Buy Now, Pay Later offering through ContextLogic’s partnership with Klarna are expected to have contributed well.
An increasing number of merchants on the company’s platform is expected to have aided its fourth-quarter performance.
Apart from this, ContextLogic’s growing monetization efforts, deepening focus on lifetime value (LTV) users, and strong endeavors to bring more high-frequency products are likely to have driven the company’s quarterly performance.
ContextLogics’s strong Logistics business is anticipated to have contributed well to its overall revenues.
The solid adoption of the company’s end-to-end shipping solutions, bolstering shipping efficiencies, and a strong focus on the optimization of average Time-to-Door (TTD) are expected to have aided the performance of the Logistics business in the quarter under review.
However, mounting expenses, especially sales and marketing, due to rising digital advertising costs are anticipated to have hindered the margin expansion of the company in the soon-to-be-reported quarter.
What Our Model Says
Our proven model does not conclusively predict an earnings beat for ContextLogic this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
ContextLogic has an Earnings ESP of 0.00% and a Zacks Rank #4 (Sell).
Stocks to Consider
Here are some stocks that you may consider as our model shows that these have the right combination of elements to beat on earnings this season.
DICK’S Sporting Goods (DKS - Free Report) has an Earnings ESP of +4.86% and a Zacks Rank of 2 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
DICK’s is scheduled to release fourth-quarter fiscal 2022 results on Mar 8. The Zacks Consensus Estimate for DKS’ earnings is pegged at $3.39 per share, suggesting an increase of 39.5% from the prior-year reported figure.
BJ’s Wholesale Club (BJ - Free Report) has an Earnings ESP of +0.33% and a Zacks Rank #3 at present.
BJ’s Wholesale Club is set to report fourth-quarter fiscal 2021 results on Mar 3. The Zacks Consensus Estimate for BJ’s earnings is pegged at 75 cents per share, which suggests an increase of 7.14% from the prior-year reported figure.
Casey’s General Stores (CASY - Free Report) has an Earnings ESP of +15.39% and a Zacks Rank #3 at present.
Casey’s is scheduled to release third-quarter fiscal 2022 results on Mar 8. The Zacks Consensus Estimate for CASY’s earnings is pegged at $1.43 per share, which suggests an increase of 37.5% from the prior-year reported figure.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.