CA - Shopify Q2 Earnings Preview: Will the stock rally sustain?

2023-08-01 13:38:15 ET

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 .

More on Shopify

• Shopify: Living On Past Glory
• Shopify: The Rally Went Too Far
• Shopify Is A Speculative Buy Before Earnings

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