Bank CEOs meet with Trump to discuss Fannie Mae and Freddie Mac - Bloomberg
In a challenging market environment, SPS Commerce (NASDAQ:SPSC) stock has touched a 52-week low, with shares falling to $122.71. According to InvestingPro data, the company maintains strong fundamentals with a healthy balance sheet, holding more cash than debt and boasting a solid current ratio of 2.6x. The cloud-based supply chain management solutions provider has faced significant headwinds over the past year, reflected in a substantial 1-year change with a decline of -32.03%. Despite these challenges, the company maintains impressive revenue growth of 18.78% and shows signs of being undervalued according to InvestingPro analysis. Investors are closely monitoring the company’s performance as it navigates through the pressures affecting the tech sector, with hopes for a strategic pivot that could steer the stock away from its current lows. Discover 15+ additional exclusive insights and detailed valuation metrics with InvestingPro’s comprehensive research report.
In other recent news, SPS Commerce announced its fourth-quarter earnings, reporting an earnings per share (EPS) of $0.89, which exceeded the consensus estimate of $0.87. Revenue for the quarter was $170.9 million, surpassing expectations and marking an 18% increase from the previous year. However, the company’s guidance for the first quarter of 2025, with an EPS range of $0.82-$0.84, fell short of the consensus estimate of $0.92. Additionally, SPS Commerce’s full-year 2025 forecast predicts an EPS of $3.78-$3.84 and revenue between $758-763 million, both slightly below analyst expectations.
In terms of analyst ratings, Citi, Needham, and Piper Sandler adjusted their price targets for SPS Commerce, with Citi and Needham maintaining a Buy rating, while Piper Sandler held a Neutral rating. DA Davidson reiterated a Buy rating and maintained a $245 price target, citing a positive outlook on profits and long-term business potential. Stifel also retained a Buy rating but reduced the price target to $200, highlighting the company’s new Total (EPA:TTEF) Addressable Market (TAM) framework as a significant growth opportunity.
SPS Commerce also announced changes to its board of directors, appointing Razat Gaurav as a new independent director. This appointment follows the decision to increase the board size from seven to eight members. Gaurav’s experience is expected to contribute to the company’s governance and strategic direction.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.