Shares in Shopify (SHOP) fell Tuesday after it reported first-quarter profit and revenue that topped views but the size of the sales beat and updated guidance left some investors unimpressed.
XShares in the maker of e-commerce software fell 4.5% to close at 127.68 on the stock market today.
Shopify said that adjusted earnings were 4 cents a share, swinging to a profit from a year earlier, with revenue rising 68% to $214.3 million, topping consensus estimates by 6%. A year earlier, Shopify reported a 5-cent loss per share on sales of $127.4 million.
Analysts expected Shopify to report a loss of 5 cents a share on sales of $202 million for the period ended March 31.
"Solid Q1 performance with upside across the board, but some may point to 6% (revenue beat) in Q1 that was only similar to the 6% beat in the seasonally strong Q4, 2017," said a note to clients from brokerage Raymond James. "We think this is an overreaction."
While Shopify turned a profit in the March quarter, it forecast an operating loss of $5 million to $7 million for the current quarter. Analysts had expected a smaller loss of $3.6 million for the June quarter.
In the June quarter, the company said it expects revenue of $232.5 million, ahead of estimates for $228.6 million.
Shopify said it expects full-year revenue in a range of 1.0 billion to $1.01 billion, up 49% year-over-year, vs. its earlier forecast of $970 million to $990 million. Consensus estimates were $997.6 million.
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The post Shopify Falls As Size Of Revenue Beat, Guidance Disappoint appeared first on Investor's Business Daily.
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