Shopify Inc. (SHOP) will unveil its first-quarter results on May 8. Wall Street anticipates the cloud-based commerce company to report higher revenues and a robust year-over-year increase in earnings. In this piece, we examine the company’s fundamentals to see whether the stock could be a solid buy prior to its earnings, whether investors should wait for a better entry point, or avoid the stock now.
For the first quarter, SHOP’s revenue is projected to rise 22.5% year-over-year to $1.85 billion. Its earnings per share estimate of $0.17 for the about-to-be-reported quarter represents a significant increase from the prior-year period. The company has a robust earnings track record, surpassing the consensus estimate in each of the past four quarters.
