12.6 C
Tuesday, October 4, 2022
EconomyShopper's inventory drops with fourth-quarter earnings, top estimates for...

Shopper’s inventory drops with fourth-quarter earnings, top estimates for revenue


Shopify stock fell Wednesday based on December quarter earnings, revenue and total merchandise volume that beat consensus estimates. Management provided an overview of revenue for 2022 for SHOP stock as the coronavirus emergency fades.


Canada Shopify (a store) reported fourth-quarter earnings before the market opened on Wednesday.

For the quarter ended December 31, Shopify’s earnings came in at 1.36 cents per share on an adjusted basis, down 14% from the same period last year. The company said revenue rose 41 percent to $1.38 billion.

Analysts expected Shopify to earn $1.30 per share on revenue of $1.34 billion. A year ago, Shopify earned $1.58 per share on revenue of $978 million.

Total merchandise volume from merchant customers increased 31% to $54.1 billion versus estimates of $53.03 billion.

Shopify stock fell 6.1% to nearly 835 before the market opened in stock market today.

“Our initial impression is that the absolute results were strong given tough comparisons, but did not live up to buying expectations,” Samad Samana, an analyst at Jefferies, said in a report. He added that the gross profit margin of 50.8% was down from the street estimate of 52.8%.

As Shopify earnings report approaches, ecommerce stock is down 35% in 2022.

Shopify Stock: Management provides general revenue forecasts

In the fourth quarter, Shopify said commerce solutions revenue rose 47% to $1.03 billion. Subscription Solutions revenue increased 26% to $351.2 million. Analysts expected business solutions revenue of $985 million and subscription solutions revenue of $357 million.

For the full year of 2022, Shopify said it expects “lower year-over-year revenue growth in the first quarter of 2022 and higher in the fourth quarter of 2022.” “We do not expect the e-commerce acceleration caused by COVID in the first half of 2021 to be repeated from government shutdowns and stimulus in the first half of 2022,” the company said.

Additionally, Shopify said it expects “Merchant Solutions’ revenue growth to more than double the year-over-year revenue growth rate for subscription solutions, as merchants benefit more from our offerings, and as we expand existing products into new geographies and roll out the latest features such as Shopify Markets.”

Shopify sets up e-commerce sites for small businesses, partnering with others to handle digital payments and shipping. Also, the e-commerce company has ramped up commercial lending.

Also, the company has a relative strength rating of 13 out of a possible 99, according to IBD stock check.

If you are new to IBD, consider taking a look at stock trading system And CAN SLIM Basics. Distinguish chart patterns It is one of the key investment guidelines.

Follow Reinhardt Krause on Twitter Tweet embed For updates on 5G wireless networks, artificial intelligence, cyber security and cloud computing.

Get a free trial of IBD Leaderboard

Best growth stock to buy and watch: see IBD stock listings updates

How to use the 10-week moving average to buy and sell


Please enter your comment!
Please enter your name here

Latest news

Olivia Cooke Flaunts Her Toned Figure Posing Seductively For A Popular Lingerie Line

CEO Savage x Fenty Olivia Cooke, who stars in the series "House of the Dragon," is the new face...

Jordan Belfort Net Worth, Age, Sources Of Income, Bio!

How many of you would love to get your life story portrayed in a movie? Great, right? Then, how...

David Beador Net Worth, Sources Of Income, Bio!

David Beador is an awesome personality in the American business world. He belongs to Newport Beach and appeared in...

Minecraft YouTube Gamer Dream Finally Reveals Face To Millions Of Followers

Dream used to be known as a smiley face icon, but in a video released early Monday, he took...

Dua Lipa Net Worth, Sources Of Income, Social Media!

Now, for the unversed, the name may sound distant, but for pop lovers, Dua Lipa is not an unknown...

Billy Ray Cyrus Net Worth, Age, Social Media, Bio!

The American singer and actor have had a great career so far. He has released at least 16 albums...

Must read

Dow Jones futures point to ‘rapid’ market reversal as Russian bank targets Russia amid invasion of Ukraine

Dow futures fell Sunday evening, along with futures for...

Automakers stopped production in the wake of the Russian invasion, and other companies are jostling too

Feb 25 (Reuters) - Several companies, including automaker Volkswagen,...

Stocks drop, oil prices jump as markets falter from Russia’s attack on Ukraine

Oil jumped to $105 a barrel, European natural gas...

Covid-19 and Vaccine News: Live Updates

Face masks are delivered at John F. Kennedy International...

You might also likeRELATED
Recommended to you