Shopify (SHOP, $243.28) shares climb +8% on phenomenal Q1 earnings beat
Shopify’s first quarter earnings per share not only crushed analysts’ estimates, but also surged more than +100% from the year-ago period.
The Canadian e-commerce company raked in 9 cents per share, compared with a loss of -5 cents estimated by analysts, according to IBES data from Refinitiv. The figure is more than double the year-ago quarter’s 4 cents.
Revenue for the quarter came in at $320.5 million, beating estimates of $309.4 million. Shopify's subscription business grew +40% to $140.5 million, emerging as a major driver of a +50% year-over-year growth in total revenue.
However, adjusted operating loss for the first quarter was 0.4% of revenue, (or $1.4 million), wider than the operating loss for the first quarter of 2018 that was 0.1% of revenue (or $200,000).
Looking ahead, Shopify expects its next quarter revenue to be in the range of $345 million to $350 million, with adjusted operating loss of -$6 million to -$8 million (excluding stock-based compensation expenses and related payroll taxes of $40 million).
For the full-year 2019, the company predicts that revenue would be $1.5 billion with adjusted operating income in the range of $20 to $30 million (excluding stock-based compensation expenses and related payroll taxes of $160 million).
Shopify shares jumped more than +8% on the earnings report.
SHOP in upward trend: price may jump up because it broke its lower Bollinger Band on December 18, 2024
SHOP may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options. In of 36 cases where SHOP's price broke its lower Bollinger Band, its price rose further in the following month. The odds of a continued upward trend are .
Technical Analysis (Indicators)
Bullish Trend Analysis
The Stochastic Oscillator suggests the stock price trend may be in a reversal from a downward trend to an upward trend. of 59 cases where SHOP's Stochastic Oscillator exited the oversold zone resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are .
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where SHOP advanced for three days, in of 342 cases, the price rose further within the following month. The odds of a continued upward trend are .
The Aroon Indicator entered an Uptrend today. In of 235 cases where SHOP Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are .
Bearish Trend Analysis
The Momentum Indicator moved below the 0 level on January 07, 2025. You may want to consider selling the stock, shorting the stock, or exploring put options on SHOP as a result. In of 90 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are .
Following a 3-day decline, the stock is projected to fall further. Considering past instances where SHOP declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating steady price growth. SHOP’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Seasonality Score of (best 1 - 100 worst) indicates that the company is fair valued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating well-balanced risk and returns. The average Profit vs. Risk Rating rating for the industry is 87, placing this stock slightly better than average.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is slightly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (11.099) is normal, around the industry mean (31.338). P/E Ratio (781.900) is within average values for comparable stocks, (158.237). Projected Growth (PEG Ratio) (1.291) is also within normal values, averaging (2.763). Dividend Yield (0.000) settles around the average of (0.084) among similar stocks. P/S Ratio (14.347) is also within normal values, averaging (58.727).
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to worse than average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
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General Information
an operator of eCommerce website that allows customers to sell online by providing software to create an online store
Industry PackagedSoftware