Website building platform Wix (NASDAQ: WIX) will be reporting earnings this Wednesday before market open. Here’s what investors should know.
Wix beat analysts’ revenue expectations last quarter, reporting revenues of $505.2 million, up 13.6% year on year. It was a slower quarter for the company, with a significant miss of analysts’ EBITDA estimates and revenue guidance for next quarter meeting analysts’ expectations.
Is Wix a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting Wix’s revenue to grow 14.4% year on year, in line with the 14% increase it recorded in the same quarter last year.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Wix rarely misses Wall Street’s revenue estimates.
Looking at Wix’s peers in the e-commerce software segment, some have already reported their Q4 results, giving us a hint as to what we can expect. Shopify delivered year-on-year revenue growth of 30.6%, beating analysts’ expectations by 2%, and GoDaddy reported revenues up 6.8%, in line with consensus estimates. Shopify traded down 13% following the results while GoDaddy was also down 14.3%.
Read our full analysis of Shopify’s results here and GoDaddy’s results here.
While some of the e-commerce software stocks have shown solid performance in this choppy environment, the group has generally underperformed, with share prices down 8.5% on average over the last month. Wix is down 12.8% during the same time and is heading into earnings with an average analyst price target of $151.20 (compared to the current share price of $72.48).
When a company has more cash than it knows what to do with, buying back its own shares can make a lot of sense–as long as the price is right. Luckily, we’ve found one, a low-priced stock that is gushing free cash flow AND buying back shares. Click here to claim your Special Free Report on a fallen angel growth story that is already recovering from a setback.
