What to Expect Ahead of Wix's (WIX) Q4 Earnings Release?
Wix.com Ltd. WIX is slated to report fourth-quarter 2021 results on Feb 16.
For the fourth quarter, the company expects revenues between $324 million and $333 million, suggesting year-over-year growth of 15-18%. The Zacks Consensus Estimate for revenues is pegged at $330.3 million, suggesting growth of 16.9% from the prior-year quarter’s reported level.
The Zacks Consensus Estimate for the bottom line is pegged at a loss of 38 cents per share. The company reported a loss of 3 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 33.6%.
In the last reported quarter, Wix reported a non-GAAP loss of 21 cents per share, narrower than the Zacks Consensus Estimate for a loss of 43 cents per share. The figure was wider than the year-ago quarter's loss of 14 cents per share.
Wix.com Ltd. Price and EPS Surprise
Wix.com Ltd. price-eps-surprise | Wix.com Ltd. Quote
Total revenues increased 26% year over year to $320.8 million and beat the consensus estimate of $314.8 million.
Let’s see how things have shaped up for the upcoming announcement.
Factors to Consider
Wix’s fourth-quarter performance is likely to have benefited from improving user base and the company’s increasing focus on the monetization of existing users.
Wix is making efforts to expand the subscriber base with product rollouts and enhancement of 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 uptake of digital services like Editor X and Ascend is likely to have contributed to annualized recurring revenues (ARR) in the quarter under review.
In November 2021, the company launched the Wix Fit Platform designed for fitness professionals. The platform provides fitness professionals with a variety of tools to manage their business and boost interaction with customers.
Dine by Wix, which enables customers to order food, make reservations and transact with any restaurant, is likely to have driven momentum across Wix Restaurants in the fourth quarter.
Synergies from recent acquisitions of Modalyst, Rise,ai, and SpeedETab are likely to have contributed to the top line in the quarter under review.
Increasing investments in product development and marketing amid intensifying 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 does not 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 #3 (Hold). 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 that you may consider as our model shows that these have the right combination of elements to beat on earnings this season.
Applied Materials AMAT has an Earnings ESP of +0.9% and a Zacks Rank of 3 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Applied Materials is set to release first-quarter fiscal 2022 results on Feb 16. The Zacks Consensus Estimate for earnings is pegged at $1.85 per share, suggesting an increase of 33.1% from the prior-year quarter’s reported figure. Shares of AMAT have increased 12.2% in the past year.
NetApp NTAP has an Earnings ESP of +0.4% and a Zacks Rank of 2 at present.
NetApp is scheduled to release third-quarter 2022 results on Feb 23. The Zacks Consensus Estimate for earnings is pegged at $1.28 per share, suggesting an increase of 16.4% from the prior-year quarter’s levels. Shares of NTAP have increased 30.5% in the past year.
Keysight Technologies KEYS has an Earnings ESP of +2.17% and a Zacks Rank of 2.
Keysight is scheduled to release first-quarter fiscal 2022 results on Feb 17. The Zacks Consensus Estimate for earnings is pegged at $1.57 per share, indicating an increase of 9.8% from the year-ago quarter’s levels. Shares of KEYS have increased 9.9% in the past year.
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