E-commerce software company Commerce (NASDAQ: CMRC) will be reporting earnings this Thursday before market open. Here’s what to look for.
Commerce missed analysts’ revenue expectations last quarter, reporting revenues of $84.51 million, flat year on year. It was a slower quarter for the company, with revenue guidance for next quarter missing analysts’ expectations significantly and annual recurring revenue in line with analysts’ 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 decline 3.1% year on year, a reversal from the 2.8% 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 Q3 results, giving us a hint as to what we can expect. GoDaddy delivered year-on-year revenue growth of 6%, beating analysts’ expectations by 1.1%, and Shopify reported revenues up 31.6%, in line with consensus estimates. GoDaddy traded up 10.7% following the results.
Read our full analysis of GoDaddy’s results here and Shopify’s results here.
There has been positive sentiment among investors in the sales and marketing software segment, with share prices up 3.5% on average over the last month. Commerce is up 5.1% during the same time and is heading into earnings with an average analyst price target of $4.25 (compared to the current share price of $3.37).
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