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WIX Gears Up to Report Q4 Earnings: Here's What to Expect
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Wix.com Ltd (WIX - Free Report) is slated to report fourth-quarter 2022 results on Feb 22.
For the fourth quarter, the company expects revenues between $349 million and $354 million. The Zacks Consensus Estimate is pegged at $351.7 million, suggesting an increase of 7.1% from the prior-year quarter’s reported level.
The Zacks Consensus Estimate for the bottom line is pegged at 8 cents per share. The company reported a loss of 37 cents per share in the year-ago quarter.
The company’s earnings beat the Zacks Consensus Estimate in three of the trailing four quarters, the average surprise being 60%.
In the last reported quarter, non-GAAP earnings were 6 cents per share in contrast to the Zacks Consensus Estimate of a loss of 7 cents per share. The company had incurred a loss of 21 cents per share in the previous-year quarter.
Total revenues increased 8% year over year to $345.8 million and beat the Zacks Consensus Estimate of $343.2 million. On a constant-currency basis, total revenues were $350.8 million, up 10% year over year.
Let’s see how things have shaped up for the upcoming announcement.
Factors to Consider
Wix’s performance is expected to have been driven by increasing need for maintaining strong online presence by businesses.
The company is likely to have benefited from strong bookings growth and an improving user base. The company’s increasing focus on monetizing 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. As of Sep 30, 2022, registered users were 238 million.
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 healthy adoption of new products like WIX Portfolio, Wix eCommerce platform and Wix Blocks is likely to have driven the top-line performance in the fourth quarter.
The company’s cost reduction initiative is likely to have provided cushioning to margin performance.
Also, Wix’s increasing traction among B2B businesses is likely to have driven its subscription growth in the to-be-reported quarter. Synergies from recent acquisitions of Modalyst, Rise, ai and SpeedETab are likely to have contributed to the top-line performance.
On the flip side, geopolitical instability, forex volatility and weakness in global macroeconomic conditions are likely to have dented the company’s performance. Higher product development and marketing investments 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 economic turbulence is an added concern.
What Our Model Says
Our proven model does not conclusively predict 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 0.00% 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 a few stocks that you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat this time around.
The Zacks Consensus Estimate for CWEN’s to-be-reported quarter’s earnings and revenues are pegged at a loss of 88 cents per share and $313.2 million, respectively. Shares of the company have gained 3.9% in the past year.
IMAX Corporation (IMAX - Free Report) has an Earnings ESP of +13.33% and presently carries a Zacks Rank #2. The company is slated to release quarterly numbers on Feb 22.
The Zacks Consensus Estimate for IMAX’s to-be-reported quarter’s earnings and revenues are pegged at 15 cents per share and $96 million, respectively. Shares of the company have lost 15.2% in the past year.
Lucid Group, Inc (LCID - Free Report) has an Earnings ESP of +3.90% and currently carries a Zacks Rank #2. The company is slated to release quarterly numbers on Feb 22.
The Zacks Consensus Estimate are pegged at a loss of 39 cents per share and $289.8 million for revenues, respectively.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
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WIX Gears Up to Report Q4 Earnings: Here's What to Expect
Wix.com Ltd (WIX - Free Report) is slated to report fourth-quarter 2022 results on Feb 22.
For the fourth quarter, the company expects revenues between $349 million and $354 million. The Zacks Consensus Estimate is pegged at $351.7 million, suggesting an increase of 7.1% from the prior-year quarter’s reported level.
The Zacks Consensus Estimate for the bottom line is pegged at 8 cents per share. The company reported a loss of 37 cents per share in the year-ago quarter.
The company’s earnings beat the Zacks Consensus Estimate in three of the trailing four quarters, the average surprise being 60%.
In the last reported quarter, non-GAAP earnings were 6 cents per share in contrast to the Zacks Consensus Estimate of a loss of 7 cents per share. The company had incurred a loss of 21 cents per share in the previous-year quarter.
Wix.com Ltd. Price and EPS Surprise
Wix.com Ltd. price-eps-surprise | Wix.com Ltd. Quote
Total revenues increased 8% year over year to $345.8 million and beat the Zacks Consensus Estimate of $343.2 million. On a constant-currency basis, total revenues were $350.8 million, up 10% year over year.
Let’s see how things have shaped up for the upcoming announcement.
Factors to Consider
Wix’s performance is expected to have been driven by increasing need for maintaining strong online presence by businesses.
The company is likely to have benefited from strong bookings growth and an improving user base. The company’s increasing focus on monetizing 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. As of Sep 30, 2022, registered users were 238 million.
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 healthy adoption of new products like WIX Portfolio, Wix eCommerce platform and Wix Blocks is likely to have driven the top-line performance in the fourth quarter.
The company’s cost reduction initiative is likely to have provided cushioning to margin performance.
Also, Wix’s increasing traction among B2B businesses is likely to have driven its subscription growth in the to-be-reported quarter. Synergies from recent acquisitions of Modalyst, Rise, ai and SpeedETab are likely to have contributed to the top-line performance.
On the flip side, geopolitical instability, forex volatility and weakness in global macroeconomic conditions are likely to have dented the company’s performance. Higher product development and marketing investments 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 economic turbulence is an added concern.
What Our Model Says
Our proven model does not conclusively predict 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 0.00% 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 a few stocks that you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat this time around.
Clearway Energy (CWEN - Free Report) has an Earnings ESP of +77.19% and presently carries a Zacks Rank #1. The company is slated to release quarterly numbers on Feb 23. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for CWEN’s to-be-reported quarter’s earnings and revenues are pegged at a loss of 88 cents per share and $313.2 million, respectively. Shares of the company have gained 3.9% in the past year.
IMAX Corporation (IMAX - Free Report) has an Earnings ESP of +13.33% and presently carries a Zacks Rank #2. The company is slated to release quarterly numbers on Feb 22.
The Zacks Consensus Estimate for IMAX’s to-be-reported quarter’s earnings and revenues are pegged at 15 cents per share and $96 million, respectively. Shares of the company have lost 15.2% in the past year.
Lucid Group, Inc (LCID - Free Report) has an Earnings ESP of +3.90% and currently carries a Zacks Rank #2. The company is slated to release quarterly numbers on Feb 22.
The Zacks Consensus Estimate are pegged at a loss of 39 cents per share and $289.8 million for revenues, respectively.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.