WIX Set to Report Q2 Earnings: Here's What You Should Know
Wix.com Ltd WIX is slated to report second-quarter 2023 results on Aug 3.
The company expects second-quarter revenues to be between $380 million and $385 million, suggesting 10-12% growth from the prior-year quarter's reported figure. The Zacks Consensus Estimate is pegged at $381.9 million, indicating an increase of 10.6% from the prior-year quarter’s reported level.
The Zacks Consensus Estimate for the bottom line is pegged at 54 cents per share. The company reported a loss of 14 cents per share in the year-ago quarter.
WIX’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 302%.
Wix.com Ltd. Price and EPS Surprise
Wix.com Ltd. price-eps-surprise | Wix.com Ltd. Quote
Factors to Consider
Wix’s performance is likely to have benefited from solid momentum in the Creative Subscriptions and Business Solutions segments.
Robust uptake of recent product launches like AI Text Creator as well as Wix Editor and other new e-commerce applications are likely to drive Wix’s results. AI Text Creator enables Wix Editor users to create, manage and grow their online presence with quality site content.
In the quarter under review, the company announced a new feature — Google Ads with Wix — to help users creating Google Ads campaigns from Wix platform. The feature will also allow users to tailor ad settings according to their requirements.
Wix also proclaimed the launch of Wix Headless, which uses application programming interfaces and a software development kit to help developers access Wix Business Solutions across different platforms.
The company is also likely to have gained from strong bookings growth and an improving user base. At the end of first-quarter 2023, registered users were 248 million. Apart from that, its focus on converting new users to paid subscribers, coupled with strong customer retention and increasing average revenue per subscription, is anticipated to have boosted second-quarter performance.
The company’s cost reduction initiative is expected to have cushioned margin performance. Also, increasing traction for its solutions among B2B businesses is likely to have driven subscription growth in the to-be-reported quarter.
However, Wix’s performance is likely to have been affected by prevailing macroeconomic environment, inflation and unfavorable foreign currency movement.
Recent Development
Wix recently unveiled its latest offering, AI Site Generator, and an array of AI-powered features designed to develop website building and management. These capabilities leverage the power of AI to automate various aspects of website creation process, empowering businesses to grow and operate more efficiently.
AI Site Generator allows Wix users to describe their vision, and generate a professional and unique website tailored to their needs. The generated website includes a homepage and all inner pages, complete with text, images and various business solutions, such as Stores, Bookings, Restaurants and Events. Users can further customize the website using integrated AI tools.
What Our Model Says
Our proven model does not conclusively 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. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks to Consider
Here are a few stocks that you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat this time around.
Itron Inc ITRI has an Earnings ESP of +7.61% and currently sports a Zacks Rank #1. ITRI is scheduled to report second-quarter 2023 earnings on Aug 3. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for ITRI’s to-be-reported quarter’s earnings and revenues is pegged at 31 cents per share and $518 million, respectively. The stock has climbed 37.4% in the past year.
Cummins Inc CMI has an Earnings ESP of +0.92% and presently has a Zacks Rank #2. CMI is set to report second-quarter 2023 earnings on Aug 3.
The Zacks Consensus Estimate for CMI’s to-be-reported quarter’s earnings and revenues is pegged at $5.19 per share and $8.24 billion, respectively. The stock has gained 19.4% in the past year.
Yelp Inc YELP has an Earnings ESP of +5.63% and carries a Zacks Rank #3. YELP is slated to release second-quarter 2023 numbers on Aug 3.
The Zacks Consensus Estimate for YELP’s to-be-reported quarter’s earnings and revenues is pegged at 14 cents per share and $325.6 million, respectively. The stock has increased 43.1% in the past year.
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