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Unlocking Q3 Potential of Shopify (SHOP): Exploring Wall Street Estimates for Key Metrics

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Wall Street analysts expect Shopify (SHOP - Free Report) to post quarterly earnings of $0.27 per share in its upcoming report, which indicates a year-over-year increase of 12.5%. Revenues are expected to be $2.11 billion, up 23% from the year-ago quarter.

The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. This represents how the covering analysts, as a whole, have reassessed their initial estimates during this timeframe.

Prior to a company's earnings announcement, it is crucial to consider revisions to earnings estimates. This serves as a significant indicator for predicting potential investor actions regarding the stock. Empirical research has consistently demonstrated a robust correlation between trends in earnings estimate revision and the short-term price performance of a stock.

While it's common for investors to rely on consensus earnings and revenue estimates for assessing how the business may have performed during the quarter, exploring analysts' forecasts for key metrics can yield valuable insights.

In light of this perspective, let's dive into the average estimates of certain Shopify metrics that are commonly tracked and forecasted by Wall Street analysts.

Based on the collective assessment of analysts, 'Revenues- Merchant solutions' should arrive at $1.51 billion. The estimate points to a change of +23% from the year-ago quarter.

The average prediction of analysts places 'Revenues- Subscription solutions' at $593.02 million. The estimate indicates a year-over-year change of +22%.

Analysts predict that the 'Gross Merchandise Volume (GMV)' will reach $67.64 billion. The estimate is in contrast to the year-ago figure of $56.21 billion.

Analysts expect 'Gross Payments Volume (GPV)' to come in at $41.64 billion. Compared to the current estimate, the company reported $32.76 billion in the same quarter of the previous year.

It is projected by analysts that the 'Monthly Recurring Revenue (MRR)' will reach $175.01 million. The estimate compares to the year-ago value of $141 million.

The combined assessment of analysts suggests that 'Shopify Plus contributed' will likely reach $55.39 million. Compared to the present estimate, the company reported $44 million in the same quarter last year.

According to the collective judgment of analysts, 'Gross Profit- Merchant solutions' should come in at $599.49 million. Compared to the current estimate, the company reported $503 million in the same quarter of the previous year.

Analysts forecast 'Gross Profit- Subscription solutions' to reach $485.81 million. The estimate is in contrast to the year-ago figure of $398 million.

View all Key Company Metrics for Shopify here>>>

Over the past month, Shopify shares have recorded returns of -1.8% versus the Zacks S&P 500 composite's +3.2% change. Based on its Zacks Rank #1 (Strong Buy), SHOP will likely outperform the overall market in the upcoming period. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>


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