Brandon Bell
Shopify (NYSE:SHOP) is scheduled to announce Q2 earnings results on Wednesday, August 2, after market close.
Consensus EPS estimate is $0.05 (vs. -$0.03 in Q2 2022) and consensus revenue estimate is $1.62B (+24.6% Y/Y).
Over the last 2 years, SHOP has beaten EPS and revenue estimates 63% of the time. Over the last 3 months, EPS estimates have seen 21 upward revisions and 4 downward. Revenue estimates have seen 31 upward revisions and 3 downward.
Shares of the Canadian e-commerce firm rallied after it posted strong Q1 sales growth and said it would sell its logistics business.
At the time, UBS said the asset sale and job cuts materially alleviate other concerns. Bank of America said the divestiture provided a better growth trajectory for free cash flow.
Last week, SVB MoffettNathanson upgraded Shopify (SHOP) as it believes the recent rally still has legs, given increasing traction with enterprise customers. However, Evercore ISI said the risk reward outlook on Shopify (SHOP) is less compelling.
Shares of Shopify (SHOP) surged 87.7% YTD, compared with the Nasdaq Internet index’s (QNET) ~47% gain.