Nucor earnings beat by $0.08, revenue fell short of estimates
On Tuesday, Benchmark analysts maintained their Buy rating and $250.00 price target for Wix.com (NASDAQ:WIX), as the company prepared to report its fourth-quarter earnings. With the stock showing a remarkable 76% gain over the past year and currently trading at $225, InvestingPro analysis suggests the stock is trading above its Fair Value. The company’s strong momentum is reflected in its impressive 37% price return over the past six months. The analysts predict that Wix.com’s revenue and adjusted gross margin will be near the upper end of the company’s guidance, with non-GAAP operating expenses expected to align with forecasts at 49% of revenue. This projection places their estimate for fourth-quarter operating income, on a non-GAAP basis, above the consensus.
Wix.com’s earnings report, anticipated later today, has been preceded by Benchmark’s analysis which suggests a strong operational performance. The firm’s analysts believe that the company’s operational leverage will be more robust than expected in the year 2025. InvestingPro data shows the company maintains a healthy 68% gross profit margin and has demonstrated solid revenue growth of 13% in the last twelve months. However, they express caution regarding the growth in bookings for the same period. The consensus estimate for year-over-year bookings growth stands at 14%, whereas Benchmark’s expectation is slightly lower at 13%.
The caution expressed by Benchmark analysts stems from the potential impact of a significant increase in bookings in 2024 due to pricing changes. Despite this, they note that further momentum in Wix.com’s Partners and Studio segments could potentially offset the challenges posed by the comparison with strong bookings in the previous year.
The focus of Benchmark’s commentary is on the immediate financial outlook for Wix.com, without delving into broader market implications or the company’s long-term strategy. As the market awaits the official earnings report from Wix.com, Benchmark’s reaffirmation of its Buy rating and price target provides a snapshot of the company’s expected financial performance. For deeper insights into Wix.com’s valuation metrics and growth prospects, including 16 additional ProTips and comprehensive financial analysis, investors can access the detailed Pro Research Report available on InvestingPro.
In other recent news, Wix.com Ltd. has been the focus of several analyst assessments and has completed a significant share buyback program. JMP Securities maintained its Market Outperform rating for Wix, citing potential growth from the adoption of Wix Studio and the AI Website Builder. Wells Fargo (NYSE:WFC) initiated coverage of Wix with an Underweight rating and a price target of $208.00, expressing concern about a potential slowdown in the pace of Creative Subscription bookings.
Citi analysts raised the price target for Wix to $275 and reiterated a Buy rating, anticipating continued momentum in the Partners segment and acceleration in the Self Creators segment. Wix also completed a $200 million share repurchase initiative, buying back approximately 1.5% of the total shares outstanding.
Morgan Stanley (NYSE:MS) analysts upgraded Wix’s stock rating to Overweight and increased the price target to $276, highlighting potential growth among Self-Creators and the Partners segment. These developments reflect the various perspectives of analysts and the company’s strategic moves in the recent period.
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