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What Analyst Projections for Key Metrics Reveal About Shopify (SHOP) Q4 Earnings

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The upcoming report from Shopify (SHOP - Free Report) is expected to reveal quarterly earnings of $0.44 per share, indicating an increase of 29.4% compared to the year-ago period. Analysts forecast revenues of $2.72 billion, representing an increase of 27% year over year.

Over the last 30 days, there has been an upward revision of 0.8% in the consensus EPS estimate for the quarter, leading to its current level. This signifies the covering analysts' collective reconsideration of their initial forecasts over the course of 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 investors typically use consensus earnings and revenue estimates as indicators of quarterly business performance, exploring analysts' projections for specific key metrics can offer valuable insights.

Bearing this in mind, let's now explore the average estimates of specific Shopify metrics that are commonly monitored and projected by Wall Street analysts.

The consensus estimate for 'Revenues- Merchant solutions' stands at $2.07 billion. The estimate suggests a change of +27.9% year over year.

The average prediction of analysts places 'Revenues- Subscription solutions' at $650.17 million. The estimate points to a change of +23.8% from the year-ago quarter.

Analysts' assessment points toward 'Gross Merchandise Volume (GMV)' reaching $92.81 billion. The estimate compares to the year-ago value of $75.1 billion.

Analysts expect 'Monthly Recurring Revenue (MRR)' to come in at $181.60 million. The estimate compares to the year-ago value of $149 million.

The collective assessment of analysts points to an estimated 'Shopify Plus contributed' of $56.88 million. Compared to the present estimate, the company reported $46 million in the same quarter last year.

Analysts predict that the 'Gross Payments Volume (GPV)' will reach $58.93 billion. The estimate is in contrast to the year-ago figure of $45.1 billion.

The consensus among analysts is that 'Gross Profit- Merchant solutions' will reach $788.12 million. Compared to the present estimate, the company reported $634 million in the same quarter last year.

Analysts forecast 'Gross Profit- Subscription solutions' to reach $528.89 million. The estimate is in contrast to the year-ago figure of $428 million.

View all Key Company Metrics for Shopify here>>>

Over the past month, Shopify shares have recorded returns of +13.1% versus the Zacks S&P 500 composite's +2.1% change. Based on its Zacks Rank #3 (Hold), SHOP will likely exhibit a performance that aligns with 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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