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Shopify (SHOP) Q2 Earnings on the Horizon: Analysts' Insights on Key Performance Measures

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The upcoming report from Shopify (SHOP - Free Report) is expected to reveal quarterly earnings of $0.28 per share, indicating an increase of 7.7% compared to the year-ago period. Analysts forecast revenues of $2.54 billion, representing an increase of 24.3% year over year.

Over the past 30 days, the consensus EPS estimate for the quarter has remained unchanged. This demonstrates the covering analysts' collective reassessment of their initial projections during this period.

Before a company reveals its earnings, it is vital to take into account any changes in earnings projections. These revisions play a pivotal role in predicting the possible reactions of investors toward the stock. Multiple empirical studies have consistently shown a strong association between trends in earnings estimates and the short-term price movements of a stock.

While investors typically rely on consensus earnings and revenue estimates to gauge how the business may have fared during the quarter, examining analysts' projections for some of the company's key metrics often helps gain a deeper insight.

That said, let's delve into the average estimates of some Shopify metrics that Wall Street analysts commonly model and monitor.

The consensus among analysts is that 'Revenues- Merchant solutions' will reach $1.88 billion. The estimate suggests a change of +27% year over year.

It is projected by analysts that the 'Revenues- Subscription solutions' will reach $659.92 million. The estimate indicates a year-over-year change of +17.2%.

Based on the collective assessment of analysts, 'Gross Merchandise Volume (GMV)' should arrive at $81.36 billion. The estimate is in contrast to the year-ago figure of $67.20 billion.

The combined assessment of analysts suggests that 'Monthly Recurring Revenue (MRR)' will likely reach $191.38 million. The estimate is in contrast to the year-ago figure of $169.00 million.

Analysts forecast 'Gross Profit- Merchant solutions' to reach $707.92 million. Compared to the current estimate, the company reported $579.00 million in the same quarter of the previous year.

Analysts' assessment points toward 'Gross Profit- Subscription solutions' reaching $535.30 million. Compared to the current estimate, the company reported $466.00 million in the same quarter of the previous year.

View all Key Company Metrics for Shopify here>>>

Shopify shares have witnessed a change of +4.9% in the past month, in contrast to the Zacks S&P 500 composite's +2.3% move. With a Zacks Rank #1 (Strong Buy), SHOP is expected outperform the overall market performance in the near term. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .


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