E-commerce software company Commerce (NASDAQ: CMRC) will be reporting results this Thursday before the bell. Here’s what to expect.
Commerce beat analysts’ revenue expectations last quarter, reporting revenues of $86.84 million, up 5.4% year on year. It was a strong quarter for the company, with a solid beat of analysts’ billings estimates and an impressive beat of analysts’ adjusted operating income estimates.
Is Commerce a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting Commerce’s revenue to be flat year on year, slowing from the 3.2% increase it recorded in the same quarter last year.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. Commerce has missed Wall Street’s revenue estimates multiple times over the last two years.
Looking at Commerce’s peers in the sales and marketing software segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Wix delivered year-on-year revenue growth of 14.9%, beating analysts’ expectations by 1.9%, and GoDaddy reported revenues up 6.6%, in line with consensus estimates. GoDaddy traded down 16.7% following the results.
Read our full analysis of Wix’s results here and GoDaddy’s results here.
There has been positive sentiment among investors in the sales and marketing software segment, with share prices up 9.6% on average over the last month. Commerce is up 2.7% during the same time and is heading into earnings with an average analyst price target of $5.15 (compared to the current share price of $3.27).
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