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What to Expect Ahead of Wix's (WIX) Q1 Earnings Release?
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Wix.com Ltd. (WIX - Free Report) is slated to report first-quarter 2022 results on May 16.
For the first quarter, the company expects revenues between $338 million and $343 million, suggesting year-over-year growth of 11-13%. The Zacks Consensus Estimate for revenues is pegged at $340 million, suggesting an increase of 11.8% from the prior-year quarter’s reported level.
The Zacks Consensus Estimate for the bottom line is pegged at a loss of 64 cents per share. The company reported a loss of 54 cents per share in the year-ago quarter.
The company’s earnings beat the Zacks Consensus Estimate in the trailing four quarters, the average surprise being 20%. In the past year, shares of WIX have lost 71.6% of their value compared with industry’s decline of 24.5%.
In the last reported quarter, Wix reported a non-GAAP loss of 37 cents per share, narrower than the Zacks Consensus Estimate for a loss of 38 cents. The figure was wider than the year-ago quarter's loss of 3 cents per share.
Total revenues increased 16% year over year to $328.3 million, missing the consensus estimate by 0.6%.
Let’s see how things have shaped up for the upcoming announcement.
Factors to Consider
Wix’s first-quarter performance is likely to have benefited from strong bookings’ growth and an improving user base. The company’s increasing focus on the monetization of existing users is likely to have acted as a tailwind.
Wix is expanding the subscriber base with product rollouts and enhancing the existing portfolio of services amid the pandemic-triggered accelerated digitalization. Also, Wix’s increasing traction among B2B businesses is likely to have driven its subscription growth in the to-be-reported quarter.
Strengthening momentum across Wix’s Business Solutions, owing to the growing adoption of G-Suite and Wix Payments, is expected to have driven growth in the segment’s top line in the to-be-reported quarter.
The company’s efforts toward the advancement of Wix Payments are expected to have driven its customer momentum. Its focus on expanding the global footprint of Wix Payments is anticipated to have been another positive.
Solid adoption of digital services like Editor X and Ascend is likely to have contributed to annualized recurring revenues in the quarter under review.
Synergies from recent acquisitions of Modalyst, Rise,ai and SpeedETab are likely to have contributed to the top line in the quarter under review,
In March 2022, the company integrated WIX Restaurants with DoorDash white-label fulfillment platform — DoorDash Drive. This will provide the restaurant owners enlisted on WIX Restaurants with access to a large delivery fleet (through APIs and custom onboarding). The DoorDash collaboration will help restaurant owners to rationalize operations by incorporating delivery to their direct ordering channel with a flat-rate delivery fee.
Wix collaborated with Amazon to allow its e-commerce merchants to seamlessly fulfill their orders, leveraging Amazon's Multi-Channel Fulfillment (MCF). MCF is an order fulfillment service from Fulfillment by Amazon that uses pooled inventory to fulfill orders on other channels — like websites.
Higher investments in product development and marketing amid increasing competition from other cloud-based software and payment platforms are likely to have exerted pressure on the company’s margins in the fourth quarter. Focus on small and medium-sized businesses that have been hit hard by the pandemic is an added concern.
What Our Model Says
Our proven model predicts an earnings beat for Wix 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.
Wix has an Earnings ESP of 15.09% and a Zacks Rank #2. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks to Consider
Here are some stocks you may consider as our model shows that these have the right combination of elements to beat earnings this season.
Cisco Systems (CSCO - Free Report) has an Earnings ESP of +0.84% and a Zacks Rank of 2 at present.
The Zacks Consensus Estimate for earnings is pegged at 86 cents per share, suggesting an increase of 3.61% from the prior-year quarter’s reported figure. Shares of CSCO have lost 8.7% in the past year.
NetApp (NTAP - Free Report) has an Earnings ESP of +2.7% and a Zacks Rank of 3 at present. NTAP is set to release fourth-quarter 2022 results on Jun 1.
The Zacks Consensus Estimate for earnings is pegged at $1.28 per share, suggesting an increase of 9.4% from the prior-year quarter’s reported figure. Shares of NTAP have lost 11.2% in the past year.
Ciena (CIEN - Free Report) has an Earnings ESP of +6.91% and a Zacks Rank of 3 at present. Ciena is set to release second-quarter fiscal 2022 results on Jun 2.
The Zacks Consensus Estimate for earnings is pegged at earnings of 54 cents per share, suggesting a decrease of 12.9% from the prior-year quarter’s reported figure. Shares of CIEN have lost 2.5% in the past year.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar
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What to Expect Ahead of Wix's (WIX) Q1 Earnings Release?
Wix.com Ltd. (WIX - Free Report) is slated to report first-quarter 2022 results on May 16.
For the first quarter, the company expects revenues between $338 million and $343 million, suggesting year-over-year growth of 11-13%. The Zacks Consensus Estimate for revenues is pegged at $340 million, suggesting an increase of 11.8% from the prior-year quarter’s reported level.
The Zacks Consensus Estimate for the bottom line is pegged at a loss of 64 cents per share. The company reported a loss of 54 cents per share in the year-ago quarter.
The company’s earnings beat the Zacks Consensus Estimate in the trailing four quarters, the average surprise being 20%. In the past year, shares of WIX have lost 71.6% of their value compared with industry’s decline of 24.5%.
In the last reported quarter, Wix reported a non-GAAP loss of 37 cents per share, narrower than the Zacks Consensus Estimate for a loss of 38 cents. The figure was wider than the year-ago quarter's loss of 3 cents per share.
Wix.com Ltd. Price and EPS Surprise
Wix.com Ltd. price-eps-surprise | Wix.com Ltd. Quote
Total revenues increased 16% year over year to $328.3 million, missing the consensus estimate by 0.6%.
Let’s see how things have shaped up for the upcoming announcement.
Factors to Consider
Wix’s first-quarter performance is likely to have benefited from strong bookings’ growth and an improving user base. The company’s increasing focus on the monetization of existing users is likely to have acted as a tailwind.
Wix is expanding the subscriber base with product rollouts and enhancing the existing portfolio of services amid the pandemic-triggered accelerated digitalization. Also, Wix’s increasing traction among B2B businesses is likely to have driven its subscription growth in the to-be-reported quarter.
Strengthening momentum across Wix’s Business Solutions, owing to the growing adoption of G-Suite and Wix Payments, is expected to have driven growth in the segment’s top line in the to-be-reported quarter.
The company’s efforts toward the advancement of Wix Payments are expected to have driven its customer momentum. Its focus on expanding the global footprint of Wix Payments is anticipated to have been another positive.
Solid adoption of digital services like Editor X and Ascend is likely to have contributed to annualized recurring revenues in the quarter under review.
Synergies from recent acquisitions of Modalyst, Rise,ai and SpeedETab are likely to have contributed to the top line in the quarter under review,
In March 2022, the company integrated WIX Restaurants with DoorDash white-label fulfillment platform — DoorDash Drive. This will provide the restaurant owners enlisted on WIX Restaurants with access to a large delivery fleet (through APIs and custom onboarding). The DoorDash collaboration will help restaurant owners to rationalize operations by incorporating delivery to their direct ordering channel with a flat-rate delivery fee.
Wix collaborated with Amazon to allow its e-commerce merchants to seamlessly fulfill their orders, leveraging Amazon's Multi-Channel Fulfillment (MCF). MCF is an order fulfillment service from Fulfillment by Amazon that uses pooled inventory to fulfill orders on other channels — like websites.
Higher investments in product development and marketing amid increasing competition from other cloud-based software and payment platforms are likely to have exerted pressure on the company’s margins in the fourth quarter. Focus on small and medium-sized businesses that have been hit hard by the pandemic is an added concern.
What Our Model Says
Our proven model predicts an earnings beat for Wix 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.
Wix has an Earnings ESP of 15.09% and a Zacks Rank #2. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks to Consider
Here are some stocks you may consider as our model shows that these have the right combination of elements to beat earnings this season.
Cisco Systems (CSCO - Free Report) has an Earnings ESP of +0.84% and a Zacks Rank of 2 at present.
CSCO is set to release third-quarter fiscal 2022 results on May 18. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for earnings is pegged at 86 cents per share, suggesting an increase of 3.61% from the prior-year quarter’s reported figure. Shares of CSCO have lost 8.7% in the past year.
NetApp (NTAP - Free Report) has an Earnings ESP of +2.7% and a Zacks Rank of 3 at present. NTAP is set to release fourth-quarter 2022 results on Jun 1.
The Zacks Consensus Estimate for earnings is pegged at $1.28 per share, suggesting an increase of 9.4% from the prior-year quarter’s reported figure. Shares of NTAP have lost 11.2% in the past year.
Ciena (CIEN - Free Report) has an Earnings ESP of +6.91% and a Zacks Rank of 3 at present. Ciena is set to release second-quarter fiscal 2022 results on Jun 2.
The Zacks Consensus Estimate for earnings is pegged at earnings of 54 cents per share, suggesting a decrease of 12.9% from the prior-year quarter’s reported figure. Shares of CIEN have lost 2.5% in the past year.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar