Nucor earnings beat by $0.08, revenue fell short of estimates
On Thursday, Benchmark analyst Mark Zgutowicz updated the price target for Wix.com (NASDAQ:WIX), increasing it to $260 from the previous $250, while maintaining a Buy rating on the shares. The adjustment comes after Wix.com’s first quarter and full-year 2025 guidance provided clarity on the company’s performance amidst foreign exchange (FX) headwinds. The company’s stock has delivered impressive returns, gaining over 73% in the past year and currently trades at $208.25. According to InvestingPro data, analyst targets range from $166 to $300, with a consensus recommendation leaning strongly toward Buy.
Wix.com’s guidance for the first quarter and full year of 2025 indicated that the entirety of the bookings and revenue miss were due to FX headwinds. Despite these challenges, which led to a 2% revision to Benchmark’s 2025 total revenue expectations, the firm’s free cash flow (FCF) margin accretion thesis for Wix.com remains unchanged. The company has guided a 2025 FCF margin of 30-31%, which includes approximately $25 million of FX headwinds, suggesting a year-over-year FCF margin increase of 230 to 330 basis points, excluding the impact of headquarters buildout. InvestingPro analysis shows the company maintains a healthy financial position with a "Good" overall health score, supported by strong revenue growth of 12.74% in the last twelve months.
The guidance incorporates non-GAAP operating expenses as a percentage of revenue to be between 47% and 48%, aligning with the targets set during the company’s 2023 Investor Day. This is noteworthy given that Wix.com outperformed its operational leverage targets in 2024 and reported better-than-expected revenue and gross profit.
Importantly, Wix.com’s 2025 guidance does not factor in any revenue from new products, which could serve as a catalyst for average revenue per subscription (ARPS) growth in the second half of the year for both Self-Creators and Partners. The analyst highlighted the potential for a sustainable and increasingly accretive revenue mix shift towards Partners, which currently shows lower sales and marketing sensitivities compared to Self-Creator segments, underscoring the potential for Partner segment accretion and the benefits of emerging automation-based efficiencies. With a gross profit margin of 68% and expected earnings growth, InvestingPro subscribers can access 15 additional key insights and a comprehensive Pro Research Report that provides deep-dive analysis of Wix.com’s valuation and growth prospects.
In other recent news, Wix.com reported fourth-quarter results that met revenue expectations and exceeded free cash flow predictions by 2%, according to Visible Alpha. The company’s total bookings increased by 18% year-over-year to $465 million, surpassing Street forecasts. Analysts from Cantor Fitzgerald, Needham, Raymond (NSE:RYMD) James, Citi, and JMP have all raised their price targets for Wix.com, reflecting optimism about the company’s future growth and product innovations. Cantor Fitzgerald lifted its target to $270, maintaining an Overweight rating, citing Wix.com’s successful initiatives like Studio AI and commerce expansions. Needham increased their target to $250, maintaining a Buy rating, and highlighted the company’s strong market position and potential revenue growth from new products. Raymond James reiterated a Strong Buy with a $300 target, emphasizing the company’s impressive bookings performance and upcoming product benefits. Citi raised its target to $280, maintaining a Buy rating, and noted robust fourth-quarter results and future top-line growth potential. JMP increased its target to $250, reiterating a Market Outperform rating, and pointed to new product initiatives in AI and Studio as key growth drivers. These developments suggest that analysts see continued value and potential upside in Wix.com shares.
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