After market close, e-commerce company Shopify (NYSE:SHOP) (TSE:SHOP) reported its Q2-2023 earnings, which beat analysts’ estimates. Earnings per share came in at $0.14, higher than the consensus estimate of $0.06 per share. Also, sales increased by 30.8% year-over-year, with revenue hitting $1.69 billion. This beat analysts’ expectations of $1.625 billion. Please note that all figures are in U.S. dollars unless otherwise stated.
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Furthermore, SHOP’s gross merchandise volume rose by 17% on a year-over-year basis to $55 billion, beating estimates by about $1.66 billion.
Looking forward, management now expects Q3 revenue to grow by a low-20% rate compared to the same period last year. The company also expects its gross margin to rise by 200 to 300 basis points in Q4 relative to the just-reported quarter.
Is SHOP Stock a Buy, According to Analysts?
According to analysts, SHOP stock comes in as a Moderate Buy based on 10 Buys, 16 Holds, and two Sells assigned in the past three months. The average SHOP stock price target of C$86.92 implies 4.2% upside potential.
If you’re wondering which analyst you should follow if you want to buy and sell SHOP stock, the most accurate analyst covering the stock (on a one-year timeframe) is Todd Coupland of CIBC, with an average return of 87.77% per rating and a 100% success rate. Click on the image below to learn more.
