What's in Store for ContextLogic (WISH) in Q3 Earnings?
ContextLogic Inc. WISH is scheduled to report third-quarter 2022 results on Nov 9.
For the third quarter, the Zacks Consensus Estimate for revenues is pegged at $119.04 million, suggesting a decline of 67.7% from the year-ago quarter’s reported figure.
The Zacks Consensus Estimate for loss is pegged at 16 cents per share, which has been stable over the past 30 days. WISH reported a loss of 5 cents per share in the prior-year quarter.
ContextLogic’s earnings surpassed the Zacks Consensus Estimate in all the trailing four quarters, the average being 59.4%.
ContextLogic Inc. Price and EPS Surprise
ContextLogic Inc. price-eps-surprise | ContextLogic Inc. Quote
Factors at Play
Weak momentum across WISH’s Marketplace business due to its sluggishness in Core Marketplace and ProductBoost is expected to have continued hurting its third-quarter performance.
Reduction in advertising spending and softness in the logistics business are expected to have impacted the upcoming results negatively.
Nevertheless, ContextLogic’s robust end-to-end shipping solutions, bolstering shipping efficiencies and a strong focus on optimizing average Time-to-Door (TTD) are expected to have been positives.
Additionally, strengthening momentum across the merchant program and the “Invite Only” process for onboarding new merchants, is expected to have driven ContextLogic’s customer momentum and reduced the customer refund rates during the to-be-reported quarter.
WISH’s growing global rebranding efforts via increasing investments might have benefited its third-quarter performance.
This apart, ContextLogic’s deepening focus on the fashion segment, might have been another positive. The introduction of WISH’s revamped women’s fashion offerings on Android is likely to have driven its momentum among female customers.
Expanding payment options with the inclusion of the Buy Now, Pay Later offering might have enhanced the customers’ shopping experience.
This apart, ContextLogic’s growing monetization efforts, intensifying focus on lifetime value (LTV) users and strong endeavors to bring more high-frequency products are likely to have driven WISH’s quarterly performance.
What Our Model Says
Our proven model does not conclusively predict an earnings beat for ContextLogic 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. But that’s not the case here, as elaborated below. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
ContextLogic has an Earnings ESP of 0.00% and a Zacks Rank #1.
Stocks to Consider
Here are some stocks worth considering, as our model shows that these have the right combination of elements to beat on earnings this season.
US Foods USFD has an Earnings ESP of +4.58% and a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
US Foods is set to report third-quarter 2022 results on Nov 10. The Zacks Consensus Estimate for USFD’s earnings is pegged at 59 cents per share, suggesting a 22.9% increase from the prior-year period’s reported figure.
The Trade Desk TTD has an Earnings ESP of +2.13% and a Zacks Rank of 2 at present.
The Trade Desk is scheduled to release third-quarter 2022 results on Nov 9. The Zacks Consensus Estimate for TTD’s earnings is pegged at 24 cents per share, suggesting 33.3% growth from the prior-year quarter’s reported figure.
Tencent Music Entertainment Group TME has an Earnings ESP of +4.76% and a Zacks Rank of 2 at present.
Tencent Music is scheduled to release third-quarter 2022 results on Nov 15. The Zacks Consensus Estimate for TME’s earnings is pegged at 11 cents per share, suggesting an increase of 22.2% from the prior-year quarter’s reported figure.
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