Nucor earnings beat by $0.08, revenue fell short of estimates
On Thursday, Cantor Fitzgerald raised the price target for Wix.com (NASDAQ:WIX) shares from $260 to $270, while maintaining an Overweight rating on the company. The increase follows Wix.com’s fourth-quarter results, which aligned with revenue expectations and exceeded free cash flow (FCF) predictions by 2%, as reported by Visible Alpha. The company has demonstrated strong performance, with InvestingPro data showing an impressive 73% return over the past year and revenue reaching $1.76 billion in the last twelve months.
The company’s total bookings saw a year-over-year increase of 18% to $465 million, slightly above Street forecasts despite facing additional foreign exchange headwinds. This growth was attributed to the company’s successful execution of key initiatives, including Studio AI and commerce expansions. Transaction (JO:TCPJ) revenue, a key segment for Wix.com, surged by 23% year-over-year, largely driven by a strong performance in Gross Payment Volume (GPV), which rose by 12% year-over-year. According to InvestingPro, the company maintains a healthy gross profit margin of 68% and has shown consistent revenue growth with a 5-year CAGR of 18%.
Wix.com provided an optimistic outlook for the future, guiding fiscal year 2025 estimated bookings and revenue growth, excluding foreign exchange impacts, to range between 13-15% and 14-16%, respectively. This guidance suggests an acceleration from fiscal year 2024 levels. Additionally, the company anticipates a free cash flow margin expansion of approximately 350 basis points. InvestingPro analysis reveals that net income is expected to grow this year, with analysts projecting EPS of $8.13 for FY2025. For deeper insights into Wix.com’s financial health and growth prospects, investors can access the comprehensive Pro Research Report, available exclusively to InvestingPro subscribers.
Analysts from Cantor Fitzgerald highlighted Wix.com’s continuous efforts to enhance its platform and introduce new products, particularly for small and medium-sized businesses (SMBs) and partners, taking advantage of artificial intelligence capabilities. With a robust product pipeline expected in 2025, the firm predicts that Wix.com will see substantial top-line growth. Furthermore, there is significant potential for operating margin expansion over the coming quarters.
In light of these developments, Cantor Fitzgerald has reiterated its Overweight rating and top-pick status for Wix.com stock. The firm has also increased its fiscal year 2026 free cash flow estimates by 7%. The revised price target of $270 is based on a 23 times multiple of the fiscal year 2026 estimated price to free cash flow, compared to the previous multiple of 25. Based on current InvestingPro Fair Value metrics, the stock appears slightly overvalued at present levels, though the company’s strong financial health score and growth potential suggest continued upside potential.
In other recent news, Wix.com has been the focus of multiple analyst updates and financial outlooks. Raymond (NSE:RYMD) James reiterated a Strong Buy rating on Wix.com, maintaining a $300 price target, highlighting the company’s strong bookings performance and potential benefits from new products like the AI Website Builder. Similarly, Citi raised its price target for Wix.com to $280, citing robust fourth-quarter results and optimistic guidance for sustained growth and margin expansion throughout 2025. Needham also increased its price target to $250, maintaining a Buy rating, and noted the potential of new product launches to enhance revenue streams. JMP followed suit by raising its target to $250, emphasizing the impact of new product initiatives such as AI Agents and the AI Website Builder.
Wix.com’s guidance indicates a 12.2% revenue growth for the first quarter of 2025, with expectations for bookings growth to accelerate towards the end of the year. Analysts from Raymond James and Citi have expressed confidence in the company’s ability to achieve significant growth in its annual recurring revenue, particularly from the Wix Studio product. JMP analysts also pointed out Wix’s operational discipline and strategic marketing investments as key factors in its projected growth. Overall, the recent analyst updates reflect a positive outlook for Wix.com, driven by product innovation and strategic financial management.
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