Wix.com Ltd WIX is slated to report third-quarter 2024 results on Nov. 20.
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The company expects third-quarter revenues to be between $440 million and $445 million, implying 12-13% growth from the prior-year quarter's reported figure. The Zacks Consensus Estimate is pegged at $443.3 million, indicating an increase of 12.6% from a year ago.
The Zacks Consensus Estimate for earnings is pegged at $1.44 per share, up 30.9% from the year-earlier quarter.
WIX’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 29.8%. The stock has risen 92.7% compared with the sub-industry’s growth of 24.5% in the past year.
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Factors to Consider for WIX’s Q3 Release
Increasing adoption of the product portfolio, especially WIX Studio and various AI products, is likely to have driven the revenues in the to-be-reported quarter.
WIX Studio has been witnessing strengthening momentum and the addition of new features and enhancements bode well. In the last reported quarter, the company rolled out new dynamic no-code design expressions and business-enablement capabilities and tools to aid Partners in augmenting collaboration with their clients. It also added the Figma plugin to the Wix Studio. By leveraging the plugin, professionals can seamlessly transfer their Figma designs to the Wix Studio platform. This will allow them to take advantage of Wix Studio's robust native business solutions, AI-powered tools and agency-level capabilities. The increase in Studio subscription purchases has been giving a boost to the Studio bookings growth rate.
Wix has been focusing on generative AI as it represents a significant business growth driver. The company has been also embedding AI assistants across its platform and has released 17 AI business assistants so far. It continues to add new products to gain on the AI boom. In September 2024, Wix launched its latest AI Theme Assistant that provides users with personalized recommendations and real-time advice, allowing them to easily customize their website’s theme.
Wix.com Ltd. Price and EPS Surprise
Wix.com Ltd. price-eps-surprise | Wix.com Ltd. Quote
Steady traction in the Self Creators and Partners’ channel due to the onboarding of new agencies and freelancers, along with the expansion of the commerce platform, is likely to have aided the bookings growth rate in the to-be-reported quarter. The Zacks Consensus Estimate for revenues from the Creative Subscriptions and Business Solutions segments is pegged at $320 million and $123 million, respectively.
Extensive cost discipline is likely to have cushioned continued margin expansion. WIX expects favorable gross margin mix and operational efficiencies to drive free cash flow performance.
However, increasing expenses, a volatile macroeconomic environment and unfavorable foreign currency fluctuations remain concerning.
What Our Model Says for WIX
Our proven model does not conclusively predict an earnings beat for WIX 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. This is not the case here.
WIX currently has an Earnings ESP of 0.00% and a Zacks Rank #3. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks to Consider
Here are a few stocks that you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat this time around.
GDS Holdings Limited GDS currently has an Earnings ESP of +4.76% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
GDS is scheduled to report quarterly earnings on Nov. 19. The Zacks Consensus Estimate for GDS’ to-be-reported quarter’s bottom line is pegged at a loss of 21 cents. The consensus estimate for revenues is pegged at $415.4 million. Shares of GDS have gained 85.7% in the past year.
Walmart Inc. WMT presently has an Earnings ESP of +1.44% and a Zacks Rank #2. WMT is scheduled to report quarterly numbers on Nov. 19. The Zacks Consensus Estimate for Walmart’s to-be-reported quarter’s earnings and revenues is pegged at 53 cents per share and $167.6 billion, respectively. Shares of WMT have gained 49.3% in the past year.
BellRing Brands, Inc. BRBR has an Earnings ESP of +6.73% and a Zacks Rank #2 at present. BellRing Brands is scheduled to report quarterly figures on Nov. 18. The Zacks Consensus Estimate for BRBR’s to-be-reported quarter’s earnings and revenues is pegged at 50 cents per share and $543.2 billion, respectively. Shares of BRBR have increased 56.2% in the past year.
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