We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
The Zacks Consensus Estimate for earnings in the to-be-reported quarter stands at 71 cents, indicating 57.8% growth from the year-ago reported quarter. The consensus estimate for revenues is pegged at $272.5 million, indicating 78% year-over-year growth. There has been no change in analyst estimates or revisions lately.
Image Source: Zacks Investment Research
The company has an impressive earnings surprise history. Earnings surpassed the Zacks Consensus Estimate in all the trailing four quarters, with an average earnings surprise of 47.9%.
Image Source: Zacks Investment Research
Lesser Chance of Q2 Earnings Beat
Our proven model doesn’t conclusively predict an earnings beat for GCT 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.
All Round Healthy Business Should be the Driver in Q2
We expect that the significant year-over-year improvement in the company’s top line in the to-be-reported quarter will be driven by an increase in both service and product revenues. The consensus estimate for service revenues is pegged at $76 million, indicating 76.7% year-over-year growth. The consensus mark for product revenues is pegged at $215 million, indicating 95.5% year-over-year growth.
Stock in Correction Phase
GCT has rallied a massive 50% year to date while plummeting 1.6% in the past six months and 26.4% in the past three months. These price dynamics suggest that the stock is in a correction phase.
Image Source: Zacks Investment Research
When we compare GCT's performance to its close competitors, the results are intriguing. While Revolve Group (RVLV - Free Report) has seen a 10.3% rise, Beyond (BYON - Free Report) has suffered a 62% decline year to date.
Investment Considerations
GCT merges its supplier-fulfilled retailing business model with advanced research and development to enhance its robust cloud infrastructure. This strategy offers a superior B2B selling and sourcing experience in the marketplace. Addressing the demand for large parcel merchandise, GCT saw significant growth in GigaCloud Marketplace GMV, sales volume, and the number of buyers and sellers.
In the first quarter of 2024, sales rose 96.5% year over year, with GMV up 64% and active buyers and 3P sellers increasing by 29.1% and 43.7%, respectively. GCT launched Branding-as-a-Service (BaaS) to help sellers improve product competitiveness. By expanding its supplier base to Colombia, Mexico and Turkey, GCT increased product diversity. The company also expanded its global fulfillment network to better support its growing marketplace demand.
Hold Off for a More Favorable Entry Point
While GCT’s current growth prospects appear robust, potential investors should consider waiting as the stock may undergo a further correction, especially when it does not seem poised for an earnings beat. GCT's long-term growth potential remains strong, making it a compelling stock to watch for the right investment opportunity.
See More Zacks Research for These Tickers
Pick one free report - opportunity may be withdrawn at any time
Image: Bigstock
Should You Buy GigaCloud (GCT) Ahead of Q2 Earnings Report?
GigaCloud Technology Inc. (GCT - Free Report) will report its second-quarter 2024 results on Aug 6, after the bell.
The Zacks Consensus Estimate for earnings in the to-be-reported quarter stands at 71 cents, indicating 57.8% growth from the year-ago reported quarter. The consensus estimate for revenues is pegged at $272.5 million, indicating 78% year-over-year growth. There has been no change in analyst estimates or revisions lately.
The company has an impressive earnings surprise history. Earnings surpassed the Zacks Consensus Estimate in all the trailing four quarters, with an average earnings surprise of 47.9%.
Lesser Chance of Q2 Earnings Beat
Our proven model doesn’t conclusively predict an earnings beat for GCT 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.
GCT has an Earnings ESP of 0.00% and a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.
All Round Healthy Business Should be the Driver in Q2
We expect that the significant year-over-year improvement in the company’s top line in the to-be-reported quarter will be driven by an increase in both service and product revenues. The consensus estimate for service revenues is pegged at $76 million, indicating 76.7% year-over-year growth. The consensus mark for product revenues is pegged at $215 million, indicating 95.5% year-over-year growth.
Stock in Correction Phase
GCT has rallied a massive 50% year to date while plummeting 1.6% in the past six months and 26.4% in the past three months. These price dynamics suggest that the stock is in a correction phase.
When we compare GCT's performance to its close competitors, the results are intriguing. While Revolve Group (RVLV - Free Report) has seen a 10.3% rise, Beyond (BYON - Free Report) has suffered a 62% decline year to date.
Investment Considerations
GCT merges its supplier-fulfilled retailing business model with advanced research and development to enhance its robust cloud infrastructure. This strategy offers a superior B2B selling and sourcing experience in the marketplace. Addressing the demand for large parcel merchandise, GCT saw significant growth in GigaCloud Marketplace GMV, sales volume, and the number of buyers and sellers.
In the first quarter of 2024, sales rose 96.5% year over year, with GMV up 64% and active buyers and 3P sellers increasing by 29.1% and 43.7%, respectively. GCT launched Branding-as-a-Service (BaaS) to help sellers improve product competitiveness. By expanding its supplier base to Colombia, Mexico and Turkey, GCT increased product diversity. The company also expanded its global fulfillment network to better support its growing marketplace demand.
Hold Off for a More Favorable Entry Point
While GCT’s current growth prospects appear robust, potential investors should consider waiting as the stock may undergo a further correction, especially when it does not seem poised for an earnings beat. GCT's long-term growth potential remains strong, making it a compelling stock to watch for the right investment opportunity.