Wix (WIX) Q3 Earnings Report Preview: What To Look For

StockStory
2024-11-19
Wix (WIX) Q3 Earnings Report Preview: What To Look For

Website design and e-commerce platform provider Wix.com (NASDAQ:WIX) will be reporting earnings tomorrow morning. Here’s what you need to know.

Wix met analysts’ revenue expectations last quarter, reporting revenues of $435.7 million, up 11.7% year on year. It was a strong quarter for the company, with an impressive beat of analysts’ EBITDA estimates and a solid beat of analysts’ billings estimates.

Is Wix a buy or sell going into earnings? Read our full analysis here, it’s free.

This quarter, analysts are expecting Wix’s revenue to grow 12.7% year on year to $444 million, slowing from the 13.9% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.43 per share.

The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Wix has a history of exceeding Wall Street’s expectations, beating revenue estimates every single time over the past two years by 0.9% on average.

Looking at Wix’s peers in the e-commerce software segment, some have already reported their Q3 results, giving us a hint as to what we can expect. GoDaddy delivered year-on-year revenue growth of 7.3%, meeting analysts’ expectations, and Shopify reported revenues up 26.1%, topping estimates by 2.2%. GoDaddy traded up 3.1% following the results while Shopify was also up 27.9%.

Read our full analysis of GoDaddy’s results here and Shopify’s results here.

There has been positive sentiment among investors in the e-commerce software segment, with share prices up 8.6% on average over the last month. Wix is up 4.5% during the same time and is heading into earnings with an average analyst price target of $190.91 (compared to the current share price of $180.25).

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