Website design and e-commerce platform provider Wix.com (NASDAQ:WIX) will be announcing earnings results tomorrow before market open. Here's what you need to know.
Last quarter Wix reported revenues of $393.8 million, up 13.9% year on year, beating analyst revenue expectations by 1.1%. It was an impressive "beat and raise" quarter. It was encouraging to see Wix slightly beat analysts' revenue expectations. The company raised the full year revenue guidance which also came in ahead of Consensus estimates.
Is Wix buy or sell heading into the earnings? Read our full analysis here, it's free.
This quarter analysts are expecting Wix's revenue to grow 13.4% year on year to $402.6 million, improving on the 6.5% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.96 per share.
Majority of analysts covering the company have reconfirmed their estimates over the last thirty days, suggesting they are expecting the business to stay the course heading into the earnings. The company has a history of exceeding Wall St's expectations, beating revenue estimates every single time over the past two years on average by 0.8%.
Looking at Wix's peers in the e-commerce software segment, some of them have already reported Q4 earnings results, giving us a hint of what we can expect. Shopify delivered top-line growth of 23.6% year on year, beating analyst estimates by 3.4% and GoDaddy reported revenues up 5.8% year on year, missing analyst estimates by 0.1%. Shopify traded down 8.3% on the results, and GoDaddy was flat on the results.
Read our full analysis of Shopify's results here and GoDaddy's results here.
There has been positive sentiment among investors in the e-commerce software segment, with the stocks up on average 2.9% over the last month. Wix is down 1.2% during the same time, and is heading into the earnings with analyst price target of $137.6, compared to share price of $127.3.
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