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Unveiling Shopify (SHOP) Q3 Outlook: Wall Street Estimates for Key Metrics

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Wall Street analysts expect Shopify (SHOP - Free Report) to post quarterly earnings of $0.15 per share in its upcoming report, which indicates a year-over-year increase of 850%. Revenues are expected to be $1.67 billion, up 21.9% from the year-ago quarter.

Over the last 30 days, there has been an upward revision of 3.1% in the consensus EPS estimate for the quarter, leading to its current level. This signifies the covering analysts' collective reconsideration of their initial forecasts over the course of this timeframe.

Ahead of a company's earnings disclosure, it is crucial to give due consideration to changes in earnings estimates. These revisions serve as a noteworthy factor in predicting potential investor reactions to the stock. Numerous empirical studies consistently demonstrate a strong relationship between trends in earnings estimate revision and the short-term price performance of a stock.

While investors typically rely on consensus earnings and revenue estimates to gauge how the business may have fared during the quarter, examining analysts' projections for some of the company's key metrics often helps gain a deeper insight.

Bearing this in mind, let's now explore the average estimates of specific Shopify metrics that are commonly monitored and projected by Wall Street analysts.

The combined assessment of analysts suggests that 'Revenues- Merchant solutions' will likely reach $1.20 billion. The estimate points to a change of +21.1% from the year-ago quarter.

It is projected by analysts that the 'Revenues- Subscription solutions' will reach $463.13 million. The estimate points to a change of +23.1% from the year-ago quarter.

Analysts' assessment points toward 'Gross Merchandise Volume (GMV)' reaching $53.85 billion. The estimate compares to the year-ago value of $46.16 billion.

According to the collective judgment of analysts, 'Gross Payments Volume (GPV)' should come in at $31.12 billion. The estimate compares to the year-ago value of $25 billion.

The collective assessment of analysts points to an estimated 'Monthly Recurring Revenue (MRR)' of $140.29 million. Compared to the current estimate, the company reported $106.97 million in the same quarter of the previous year.

The average prediction of analysts places 'Shopify Plus contributed' at $42.82 million. Compared to the current estimate, the company reported $35.10 million in the same quarter of the previous year.

View all Key Company Metrics for Shopify here>>>

Over the past month, shares of Shopify have returned -8.2% versus the Zacks S&P 500 composite's -2.2% change. Currently, SHOP carries a Zacks Rank #3 (Hold), suggesting that its performance may align with the overall market in the near future. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>


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