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GigaCloud to Report Q2 Earnings: What's in the Cards for the Stock?

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Key Takeaways

  • {\"0\":\"GCT\'s Q2 revenues are expected to fall 6.7% year over year to $290.2 million\",\"1\":\"Product revenues are projected to decline 20.4%, reflecting normalization in order volumes\",\"2\":\"Service revenues may grow 30.6%, partially offsetting product weakness in the quarter\"}

GigaCloud Technology Inc. (GCT - Free Report) is scheduled to report its second-quarter 2025 results on Aug. 7, after the bell.

We expect a year-over-year decline in the company’s top line in the to-be-reported quarter, mainly due to weakness in product revenues. The Zacks Consensus Estimate for total revenues is pegged at $290.2 million, indicating a 6.7% year-over-year decline. The consensus mark for product revenues is pegged at $179 million, indicating a 20.4% year-over-year decline.

The anticipated drop reflects a normalization in order volumes following the company’s outsized growth in prior quarters, as well as possible macro-related softness in cross-border e-commerce activity. Service revenues may partially offset the decline, the consensus mark for which is pegged at $111 million, indicating 30.6% year-over-year growth.

Earnings are also expected to decline meaningfully, with the Zacks Consensus Estimate pegged at 46 cents, down 29.2% from the year-ago actual. The drop is likely tied to operational costs, coupled with lower leverage from declining revenues.

GigaCloud Technology Inc. Price and EPS Surprise

GigaCloud Technology Inc. Price and EPS Surprise

GigaCloud Technology Inc. price-eps-surprise | GigaCloud Technology Inc. Quote

What Our Model Says About Limbach

Our proven model does not conclusively predict an earnings beat for GCT this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that is not the case here. You can uncover the best stocks before they are reported with our Earnings ESP Filter.

GCT has an Earnings ESP of 0.00% and a Zacks Rank of 4 (Sell) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Here are a few stocks, which, according to our model, have the right combination of elements to beat on earnings this season.

AppLovin (APP - Free Report) : The Zacks Consensus Estimate for second-quarter 2025 revenues is pegged at $1.21 billion, indicating a 12.3% from the year-ago quarter’s actual. For earnings, the consensus mark is pegged at $1.99 per share, suggesting a more than 100% increase from the year-ago quarter’s reported number. APP surpassed the consensus estimate in the past four quarters, with an average beat of 22.9%.

AppLovin has an Earnings ESP of +2.59% and a Zacks Rank of 3. It is scheduled to declare its second-quarter 2025 results on August 6.

Coherent Corp. (COHR - Free Report) : The Zacks Consensus Estimate for fourth-quarter fiscal 2025 revenues is pegged at $1.51 billion, indicating growth of 15.2% from the year-ago quarter’s actual. For earnings, the consensus mark is pegged at 93 cents per share, suggesting 52.5% growth from the year-ago quarter’s reported number. COHR surpassed the consensus estimate in the past four quarters, with an average beat of 15.2%.

Coherent Corp. has an Earnings ESP of +4.91% and a Zacks Rank of 1 at present. It is scheduled to declare its fourth-quarter fiscal 2025 results on August 13.


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