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Wix.com (WIX) to Report Q1 Earnings: What's in the Offing?

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Wix.com Ltd (WIX - Free Report) is slated to report first-quarter 2023 results on May 17.

For the first quarter, the company expects revenues between $367 million and $371 million. The Zacks Consensus Estimate is pegged at $368.9 million, suggesting an increase of 8% from the prior-year quarter’s reported level.

The Zacks Consensus Estimate for the bottom line is pegged at 23 cents per share. The company reported a loss of 72 cents per share in the year-ago quarter.

The company’s earnings beat the Zacks Consensus Estimate in three of the trailing four quarters, while missed in the other. The average surprise came in at 225%.

Wix.com Ltd. Price and EPS Surprise

Wix.com Ltd. Price and EPS Surprise

Wix.com Ltd. price-eps-surprise | Wix.com Ltd. Quote

Factors to Consider

Wix’s performance is expected to have been driven by robust uptake of Wix Editor and other new e-commerce applications. In the quarter under review, the company announced an AI Text Creator, enabling Wix Editor users to create, manage and grow their online presence with quality site content.

The company is likely to have benefited from strong bookings growth and an improving user base. At the end of 2022, registered users were 243 million, up 10% year over year. Apart from that, the company’s focus on converting new users to paid subscriptions, coupled with strong customer retention and increasing average revenue per subscription, is anticipated to have boosted first-quarter performance.

Also, continued momentum across its Creative Subscriptions’ and Business Solutions segment is expected to have improved top-line performance. The company’s increasing focus on monetizing existing users is likely to have acted as a tailwind.

The company’s cost reduction initiative is expected to have cushioned margin performance. Also, increasing traction for its solutions among B2B businesses is likely to have driven its subscription growth in the to-be-reported quarter.

However, the company’s performance is likely to have been impacted due to the volatile macroeconomic environment and unfavorable foreign currency movement. Also, elevated energy prices and rising inflation are concerns.

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.

Wix has an Earnings ESP of 0.00% and a Zacks Rank #2. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Stocks to Consider

Here are a few stocks that you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat this time around.

Agilent Technologies (A - Free Report) has an Earnings ESP of +0.40% and presently carries a Zacks Rank #2. The company is slated to release quarterly numbers on May 23. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for Agilent’s to-be-reported quarter’s earnings and revenues is pegged at a loss of $1.27 per share and $1.67 billion, respectively. Shares of the company have gained 5.9% in the past year.

BJ’s Wholesale Club (BJ - Free Report) has an Earnings ESP of +4.19% and presently carries a Zacks Rank #2. The company is slated to release quarterly numbers on May 23.

The Zacks Consensus Estimate for BJ’s to-be-reported quarter’s earnings and revenues is pegged at 84 cents per share and $4.81 billion, respectively. Shares of the company have gained 10.1% in the past year.

MakeMyTrip Limited (MMYT - Free Report) has an Earnings ESP of +78.95% and presently carries a Zacks Rank #2. The company is slated to release quarterly numbers on May 16.

The Zacks Consensus Estimate for MMYT’s to-be-reported quarter’s earnings and revenues is pegged at 10 cents per share and $141 million, respectively. Shares of the company have gained 10.6% in the past year.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

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