YahooFinance reports that E-commerce firm Shopify (NYSE: SHOP) is scheduled to announce its latest earnings for the current quarter before trading commences on Wednesday of this week.
Analysts are predicting revenues in excess of $3.60 billion for the current quarter, reflecting an annual growth rate of 27.9% when compared with similarly situated quarters last year, which were at an annual rate of 31.2%. In addition, the consensus of analysts forecast adjusted earnings per share of approximately $0.51 for the current quarter.
Analysts covering the company have once again confirmed revenue estimates. They are optimistic about both the company and the long-term outlook for its future earnings reports. In fact, in 2 years, Shopify has beaten Wall Street’s projections for revenues on an average basis by approximately 2.5% and has yet to fall short on any revenue projections during that time period.
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Some of Shopify’s competitors in the sales & marketing software sector have reported Q4 earnings already, allowing us to gauge potential performance for Shopify. For instance, ZoomInfo had year-on-year revenue growth of 3.2% that exceeded analysts’ predictions by 3.2%. Similarly, LiveRamp’s reported revenue increase by 8.6%, aligned with consensus estimates.
The cloud of uncertainty surrounding 2025 primarily results from potential changes in trade policy and corporate tax policy, both of which could diminish business confidence, therefore holding back growth. While sales & marketing technology stock prices on average decreased 17.9% in the past 30 days, Shopify also had a greater decline than the group on average, down 27.1%.
As a result, currently the average analyst target price for Shopify is $179.24, compared to the current price of $120.68 based on the 31-day moving average.
