Earnings Outlook For Shopify

On Wednesday, July 28, Shopify SHOP will release its latest earnings report. Benzinga's report can help you figure out the ins and outs of the earnings release.

What Are Earnings, Net Income, And Earnings Per Share?

Earnings and EPS are useful metrics of profitability. Total earnings also known as net income is equal to total revenue minus total expenses. Dividing net income by the total number of shares outstanding yields EPS.

Earnings And Revenue

Shopify EPS is expected to be around $0.96, according to sell-side analysts. Sales will likely be near $1.04 billion. Shopify earnings in the same period a year ago was $1.05 per share. Quarterly sales came in at $714.34 million.

Why Analyst Estimates And Earnings Surprises Are Important

Wall Street analysts who study this company will publish analyst estimates of revenue and EPS. The averages of all analyst EPS and revenue estimates are called the "consensus estimates"; these consensus estimates can have a significant effect on a company's performance during an earnings release. When a company posts earnings or revenue above or below a consensus estimate, it has posted an "earnings surprise", which can really move a stock depending on the difference between actual and estimated values.

The analyst consensus estimate would represent a 8.57% decrease in the company's earnings. Revenue would be have grown 45.59% from the same quarter last year. Shopify's reported EPS has stacked up against analyst estimates in the past like this:

Want Real-Time Earnings Calendar Updates?

Benzinga consistently updates its earnings calendars to stay up-to-date with the latest company earnings reports. Check out the full earnings calendar list updated in real-time by following this link.

Stock Performance

Shares of Shopify were trading at $1582.28 as of July 26. Over the last 52-week period, shares are up 51.29%. Given that these returns are generally positive, long-term shareholders are probably satisfied going into this earnings release.

Do not be surprised to see the stock move on comments made during its conference call. Shopify is scheduled to hold the call at 08:30:00 ET and can be accessed here.