Shopify (SHOP) to Report Q2 Earnings: What's in the Cards?
Shopify SHOP is scheduled to report second-quarter 2022 results on Jul 27.
The Zacks Consensus Estimate for second-quarter revenues is currently pegged at $1.33 billion, suggesting growth of 19.24% from the year-ago quarter’s reported figure.
The consensus mark for earnings is pegged at 3 cents per share, unchanged over the past 30 days, indicating a year-over-year decline of 86.36%.
The company’s earnings beat the Zacks Consensus Estimate in two of the trailing four quarters and missed the same in two remaining quarters, delivering an earnings surprise of 4.78%, on average.
Shopify Inc. Price and EPS Surprise
Shopify Inc. price-eps-surprise | Shopify Inc. Quote
Let’s see how things have shaped up for the upcoming announcement.
Factors to Note
Shopify’s second-quarter 2022 results are expected to have suffered from a challenging macro environment and higher inflation.
Moreover, Shopify’s margin expansion in the short term is likely to be dampened due to its focus on scaling operations, and investments in product development and fulfillment platform.
The company has been investing in developing the best products for modern e-commerce. This has increased Shopify’s merchant base, a trend likely to have continued in the to-be-reported quarter.
In the last reported quarter, Monthly Recurring Revenues (MRR) were up 17% year over year, reaching $105.2 million as new merchants joined the platform and the number of retail locations using POS Pro increased.
The Zacks Consensus Estimate for MRR is pegged at $110 million, indicating 15.8% growth from the figure reported in the year-ago quarter.
Strong growth in the adoption of Shopify products such as Shop Pay, Shop Pay Installments and Shopify Balance is likely to have driven the company’s top line.
In the last reported quarter, Gross Merchandise Volume (GMV) was up 51% year over year, reaching $22 billion.
The Zacks Consensus Estimate for GMV is pegged at $49.19 billion, indicating 16.6% growth from the figure reported in the year-ago quarter.
What Our Model Says
According to the Zacks model, the combination of a positive Earnings ESP and Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat.
Shopify has an Earnings ESP of +4.19% and a Zacks Rank #3. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Other Stocks to Consider
Here are a few companies worth considering, as our model shows that these too have the right combination of elements to beat on earnings in their upcoming releases:
Aspen Technology AZPN has an Earnings ESP of +1.40% and carries a Zacks Rank of 2, at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Aspen shares are up 19.5% year to date. AZPN is set to report fourth-quarter fiscal 2022 results on Aug 8.
Fastly FSLY has an Earnings ESP of +8.40% and a Zacks Rank #2.
Fastly shares have declined 67.6% on a year-to-date basis. The company is set to report second-quarter 2022 results on Aug 3.
DigitalOcean DOCN has an Earnings ESP of +6.94% and a Zacks Rank #2.
DigitalOcean shares are down 51.3% year to date. DOCN is set to report second-quarter fiscal 2022 results on Aug 8.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
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Shopify Inc. (SHOP) : Free Stock Analysis Report
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