Wix.com (WIX) to Report Q2 Earnings: Is a Beat in Store?

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Wix.com Ltd.WIX is set to report second-quarter 2018 results on Jul 25. Notably, the company has recorded a positive earnings surprise of 50% in the last reported quarter.

In the last reported quarter, Wix posted non-GAAP loss of 5 cents per share, narrower than the Zacks Consensus Estimate loss of 11 cents. Moreover, the figure was also lower than the year-ago loss of 18 cents per share.

Total revenues increased 49% year over year to $137.8 million, surpassing the Zacks Consensus Estimate of $135 million. Collections during the quarter came in at $159.7 million, up 39% year over year.

What to Expect?

For the second quarter, the company expects revenues in the range of $144-$145 million. The Zacks Consensus Estimate for revenues is estimated to be $144.7 million. Further, the Zacks Consensus Estimate for earnings is pegged at 9 cents per share, up 32.4% year over year.

The company also updated fiscal 2018 guidance. Management now anticipates fiscal 2018 revenues in the range of $594-$597 million (up from the previous guidance of $591-$595 million).

Factors to Consider

Wix is a cloud-based web development platform. The company continues to launch a number of user-friendly applications to meet the requirements of a dynamic retail environment, consequently adding to its user base.

Further, it is benefiting from retail's rapid transition to mobile and social sales channels. We believe that massive growth in e-commerce spending also bodes well for Wix. Further, the company's sound liquidity and cash flow reflects that it is making investments in the right direction.

We believe that all these factors will positively impact its results in the to-be-reported quarter and bolster customer base going ahead.

However, increasing investments on product development, infrastructure and platform continues to drag down its bottom-line in the near term. Further, lack of significant presence in the Asia-Pacific market and competition from peers add to its woes.

Wix.com Ltd. Price and EPS Surprise

Wix.com Ltd. Price and EPS Surprise | Wix.com Ltd. Quote

What the Zacks Model Says

According to the Zacks model, a company with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) has a good chance of beating estimates if it also has a positive Earnings ESP . Sell-rated stocks (Zacks Rank #4 or 5) are best avoided.

Wix has a Zacks Rank #3 and an Earnings ESP of +16.28%. This combination makes surprise prediction difficult. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter .

Stocks to Consider

Here are some stocks, which you may consider as our model shows that these have the right combination of elements to post an earnings beat in its upcoming release:

Hubbell Inc HUBB has an Earnings ESP of +1.97% and a Zacks Rank #2. You can see the complete list of today's Zacks #1 Rank stocks here .

Texas Instruments Incorporated TXN has an Earnings ESP of +0.96% and a Zacks Rank #2.

Lockheed Martin Corporation LMT has an Earnings ESP of +0.14% and a Zacks Rank #2.

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Wix.com Ltd. (WIX): Free Stock Analysis Report

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Texas Instruments Incorporated (TXN): Free Stock Analysis Report

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

This article appears in: Investing , Business , Earnings , Stocks
Referenced Symbols: WIX , LMT , HUBB , TXN

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