We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Shopify (SHOP) to Report Q1 Earnings: What's in the Cards?
Read MoreHide Full Article
Shopify (SHOP - Free Report) is scheduled to report first-quarter 2022 results on May 5.
The Zacks Consensus Estimate for first-quarter revenues is currently pegged at $1.25 billion, suggesting growth of 26.11% from the year-ago quarter’s reported figure.
The consensus mark for earnings has moved up by a cent in the past 30 days and is currently pegged at 82 cents per share, indicating year-over-year growth of 26.11%.
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 62.95%, on average.
Let’s see how things have shaped up for the upcoming announcement.
Factors to Note
The increased costs of raw materials, advertising, labor and shipping are anticipated to have affected Shopify’s first-quarter 2022 results. Moreover, Shopify’s margin expansion in the short term is likely to be dampened due to its focus on scaling operations and investments in product development and fulfillment platform.
Nevertheless, the e-commerce boom amid the pandemic has impacted Shopify positively.
The company has been investing in building the best products for modern commerce. This increased SHOP’s merchant base in 2021, making it nearly twice as big as in 2019. The trend is likely to have continued in the to-be-reported quarter.
In the last reported quarter, Monthly Recurring Revenues (MRR) were up 23% year over year, reaching $102 million as new merchants joined the platform and the number of retail locations using POS Pro increased.
The Zacks Consensus Estimate for MRR is pegged at $107 million, indicating 19% growth from the figure reported in the year-ago quarter.
In the first quarter, the company introduced Shopify Markets, making cross-border commerce easier for entrepreneurs. Shopify also began rolling it out to all merchants at the end of January 2022. By managing all cross-border commerce in Shopify’s centralized commerce platform, Shopify Markets provide merchants a unified view of their entire business across borders.
Strong growth in the adoption of Shopify products such as Shop Pay, Shop Pay Installments and Shopify Balance is likely to have driven the company’s top line.
In the last reported quarter, Gross Merchandise Volume (GMV) was up 51% year over year, reaching $54.1 billion.
The Zacks Consensus Estimate for GMV is pegged at $46.4 billion, indicating 24.3% growth from the figure reported in the year-ago quarter.
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 -20.32% 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:
BWX Technologies shares have outperformed the sector in the year-to-date period, returning 6.4%. The company is set to announce first-quarter 2022 results on May 9.
Analog Devices (ADI - Free Report) has an Earnings ESP of +2.17% and carries a Zacks Rank of 2 at present.
Analog Devices shares have underperformed the sector in the year-to-date period, declining 9.6%. The company is set to announce second-quarter 2022 results on May 18.
Camtek (CAMT - Free Report) has an Earnings ESP of +1.73% and a Zacks Rank #2.
Camtek’s shares have underperformed the sector in the year-to-date period, declining 35.4%. The company is scheduled to release first-quarter 2022 results on May 12.
Image: Shutterstock
Shopify (SHOP) to Report Q1 Earnings: What's in the Cards?
Shopify (SHOP - Free Report) is scheduled to report first-quarter 2022 results on May 5.
The Zacks Consensus Estimate for first-quarter revenues is currently pegged at $1.25 billion, suggesting growth of 26.11% from the year-ago quarter’s reported figure.
The consensus mark for earnings has moved up by a cent in the past 30 days and is currently pegged at 82 cents per share, indicating year-over-year growth of 26.11%.
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 62.95%, on average.
Let’s see how things have shaped up for the upcoming announcement.
Factors to Note
The increased costs of raw materials, advertising, labor and shipping are anticipated to have affected Shopify’s first-quarter 2022 results. Moreover, Shopify’s margin expansion in the short term is likely to be dampened due to its focus on scaling operations and investments in product development and fulfillment platform.
Nevertheless, the e-commerce boom amid the pandemic has impacted Shopify positively.
The company has been investing in building the best products for modern commerce. This increased SHOP’s merchant base in 2021, making it nearly twice as big as in 2019. The trend is likely to have continued in the to-be-reported quarter.
In the last reported quarter, Monthly Recurring Revenues (MRR) were up 23% year over year, reaching $102 million as new merchants joined the platform and the number of retail locations using POS Pro increased.
The Zacks Consensus Estimate for MRR is pegged at $107 million, indicating 19% growth from the figure reported in the year-ago quarter.
Shopify Inc. Price, Consensus and EPS Surprise
Shopify Inc. price-consensus-eps-surprise-chart | Shopify Inc. Quote
In the first quarter, the company introduced Shopify Markets, making cross-border commerce easier for entrepreneurs. Shopify also began rolling it out to all merchants at the end of
January 2022. By managing all cross-border commerce in Shopify’s centralized commerce platform, Shopify Markets provide merchants a unified view of their entire business across borders.
Strong growth in the adoption of Shopify products such as Shop Pay, Shop Pay Installments and Shopify Balance is likely to have driven the company’s top line.
In the last reported quarter, Gross Merchandise Volume (GMV) was up 51% year over year, reaching $54.1 billion.
The Zacks Consensus Estimate for GMV is pegged at $46.4 billion, indicating 24.3% growth from the figure reported in the year-ago quarter.
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 -20.32% 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:
BWX Technologies (BWXT - Free Report) has an Earnings ESP of +2.29% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
BWX Technologies shares have outperformed the sector in the year-to-date period, returning 6.4%. The company is set to announce first-quarter 2022 results on May 9.
Analog Devices (ADI - Free Report) has an Earnings ESP of +2.17% and carries a Zacks Rank of 2 at present.
Analog Devices shares have underperformed the sector in the year-to-date period, declining 9.6%. The company is set to announce second-quarter 2022 results on May 18.
Camtek (CAMT - Free Report) has an Earnings ESP of +1.73% and a Zacks Rank #2.
Camtek’s shares have underperformed the sector in the year-to-date period, declining 35.4%. The company is scheduled to release first-quarter 2022 results on May 12.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.