Wall Street analysts expect Shopify (SHOP) to post quarterly earnings of $0.39 per share in its upcoming report, which indicates a year-over-year increase of 11.4%. Revenues are expected to be $3.43 billion, up 28.1% from the year-ago quarter.
The consensus EPS estimate for the quarter has undergone an upward revision of 1.4% in the past 30 days, bringing it to its present level. This represents how the covering analysts, as a whole, have reassessed their initial estimates during this timeframe.
Before a company announces its earnings, it is essential to take into account any changes made to earnings estimates. This is a valuable factor in predicting the potential reactions of investors toward the stock. Empirical research has consistently shown a strong correlation between trends in earnings estimate revisions and the short-term price performance of a stock.
While it's common for investors to rely on consensus earnings and revenue estimates for assessing how the business may have performed during the quarter, exploring analysts' forecasts for key metrics can yield valuable insights.
In light of this perspective, let's dive into the average estimates of certain Shopify metrics that are commonly tracked and forecasted by Wall Street analysts.
The consensus among analysts is that 'Revenues- Merchant solutions' will reach $2.63 billion. The estimate points to a change of +30.1% from the year-ago quarter.
The collective assessment of analysts points to an estimated 'Revenues- Subscription solutions' of $794.99 million. The estimate indicates a change of +21.2% from the prior-year quarter.
Analysts forecast 'Gross Merchandise Volume (GMV)' to reach $111.58 billion. Compared to the present estimate, the company reported $87.84 billion in the same quarter last year.
The combined assessment of analysts suggests that 'Monthly Recurring Revenue (MRR)' will likely reach $218.12 million. The estimate compares to the year-ago value of $185.00 million.
According to the collective judgment of analysts, 'Gross Profit- Merchant solutions' should come in at $978.69 million. Compared to the current estimate, the company reported $767.00 million in the same quarter of the previous year.
Analysts expect 'Gross Profit- Subscription solutions' to come in at $652.49 million. The estimate is in contrast to the year-ago figure of $535.00 million.
View all Key Company Metrics for Shopify here>>>Over the past month, Shopify shares have recorded returns of +2.5% versus the Zacks S&P 500 composite's -0.5% change. Based on its Zacks Rank #2 (Buy), SHOP will likely outperform the overall market in the upcoming period. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .
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Shopify Inc. (SHOP): Free Stock Analysis Report
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