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Wix (WIX) Gears Up to Post Q2 Results: What's in the Cards?
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Wix.com Ltd. (WIX - Free Report) is slated to report second-quarter 2021 results on Aug 11.
For the second quarter, the company expects revenues between $308 million and $312 million, suggesting year-over-year growth of 30-32%. The Zacks Consensus Estimate for revenues is pegged at $311.5 million, suggesting growth of 31.9% from the prior-year quarter’s reported level.
The Zacks Consensus Estimate for second-quarter bottom line is pegged at a loss of 28 cents, wider than a loss of 26 cents over the past 30 days. The company reported a loss of 26 cents per share in year-ago quarter.
Factors to Consider
Strengthening momentum across Wix’s Business Solutions, owing to the growing adoption of G-Suite and Wix Payments, is expected to have driven growth in the company’s Collections in the to-be-reported quarter.
Moreover, the company’s growing efforts toward the advancement of Wix Payments are expected to have driven its customer momentum. Its deepening focus toward expanding the global footprint of Wix Payments is anticipated to have been another positive.
Wix’s increasing traction among B2B businesses is likely to have benefited its subscription growth in the second quarter.
Solid uptake of digital services like Editor X and Ascend is likely to have contributed well to annualized recurring revenues (ARR) from Creative subscriptions in the quarter under review.
Wixis undertaking measures to expand the subscriber base with product rollouts and enhancement of the existing portfolio of services amid the pandemic-triggered digitalization.
In the to-be-reported quarter, the company launched Wix POS solutions, which enables business owners to manage their sales, inventory and data seamlessly from the Wix platform by allowing them to accept payments for goods and services in store, online and on the go. This expanded Wix’s omnichannel solution offerings, which is expected to have encouraged customer engagement on its platform.
The introduction of Dine by Wix, which allows customers to order food, make reservations and transact with any restaurant, is likely to have driven momentum across Wix Restaurants in the second quarter.
The company expanded its eCommerce platform by acquiring a marketplace and dropshipping platform—Modalyst. This is expected to have aided the company in gaining further momentum across business owners. Also, the Rise.ai buyout is likely to have contributed well to the platform in the quarter under review.
Wix has also been working on increasing the monetization of existing users. These, in turn, are expected to have contributed to the to-be-reported quarter’s top-line growth.
The pandemic-induced shelter-in-place guidelines across several countries are likely to have led to an increase in the number of newly registered users and premium subscriptions in the quarter under review.
However, a focus on small and medium-sized (SMB) businesses, which are hit hard by the macroeconomic headwinds amid the coronavirus-induced slowdown, is likely to have been a major concern in the second quarter.
Higher investments in product development and marketing amid intensifying competition from other cloud-based software and payment platforms are likely tohave weighed on the company’s margin in the second quarter.
What Our Model Says
Our proven model does not conclusively predict an earnings beat for Wix this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Alpha and Omega has an Earnings ESP of -59.09% and a Zacks Rank #4.
Stocks to Consider
Here are some stocks that you may consider as our model shows that these have the right combination of elements to beat on earnings this season.
Image: Bigstock
Wix (WIX) Gears Up to Post Q2 Results: What's in the Cards?
Wix.com Ltd. (WIX - Free Report) is slated to report second-quarter 2021 results on Aug 11.
For the second quarter, the company expects revenues between $308 million and $312 million, suggesting year-over-year growth of 30-32%. The Zacks Consensus Estimate for revenues is pegged at $311.5 million, suggesting growth of 31.9% from the prior-year quarter’s reported level.
The Zacks Consensus Estimate for second-quarter bottom line is pegged at a loss of 28 cents, wider than a loss of 26 cents over the past 30 days. The company reported a loss of 26 cents per share in year-ago quarter.
Factors to Consider
Strengthening momentum across Wix’s Business Solutions, owing to the growing adoption of G-Suite and Wix Payments, is expected to have driven growth in the company’s Collections in the to-be-reported quarter.
Moreover, the company’s growing efforts toward the advancement of Wix Payments are expected to have driven its customer momentum. Its deepening focus toward expanding the global footprint of Wix Payments is anticipated to have been another positive.
Wix’s increasing traction among B2B businesses is likely to have benefited its subscription growth in the second quarter.
Solid uptake of digital services like Editor X and Ascend is likely to have contributed well to annualized recurring revenues (ARR) from Creative subscriptions in the quarter under review.
Wix.com Ltd. Price and EPS Surprise
Wix.com Ltd. price-eps-surprise | Wix.com Ltd. Quote
Wixis undertaking measures to expand the subscriber base with product rollouts and enhancement of the existing portfolio of services amid the pandemic-triggered digitalization.
In the to-be-reported quarter, the company launched Wix POS solutions, which enables business owners to manage their sales, inventory and data seamlessly from the Wix platform by allowing them to accept payments for goods and services in store, online and on the go. This expanded Wix’s omnichannel solution offerings, which is expected to have encouraged customer engagement on its platform.
The introduction of Dine by Wix, which allows customers to order food, make reservations and transact with any restaurant, is likely to have driven momentum across Wix Restaurants in the second quarter.
The company expanded its eCommerce platform by acquiring a marketplace and dropshipping platform—Modalyst. This is expected to have aided the company in gaining further momentum across business owners. Also, the Rise.ai buyout is likely to have contributed well to the platform in the quarter under review.
Wix has also been working on increasing the monetization of existing users. These, in turn, are expected to have contributed to the to-be-reported quarter’s top-line growth.
The pandemic-induced shelter-in-place guidelines across several countries are likely to have led to an increase in the number of newly registered users and premium subscriptions in the quarter under review.
However, a focus on small and medium-sized (SMB) businesses, which are hit hard by the macroeconomic headwinds amid the coronavirus-induced slowdown, is likely to have been a major concern in the second quarter.
Higher investments in product development and marketing amid intensifying competition from other cloud-based software and payment platforms are likely tohave weighed on the company’s margin in the second quarter.
What Our Model Says
Our proven model does not conclusively predict an earnings beat for Wix this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Alpha and Omega has an Earnings ESP of -59.09% and a Zacks Rank #4.
Stocks to Consider
Here are some stocks that you may consider as our model shows that these have the right combination of elements to beat on earnings this season.
CyberArk Software (CYBR - Free Report) has an Earnings ESP of +37.93% and it sports a Zacks Rank of 2 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Agilent Technologies (A - Free Report) has an Earnings ESP of +1.16% and a Zacks Rank of 2, at present.
Semtech (SMTC - Free Report) has an Earnings ESP of +2.02% and it carries a Zacks Rank of 2 at present.