Wix.com (WIX) shares surged 6.5% in the most recent trading session, closing at $183.64. This rise was supported by notable trading volume, indicating more shares exchanged than usual. This uptick compares favorably to the stock’s 2.9% gain over the last month.
Strong Financials Boost Stock Confidence
The rise in Wix’s share price is linked to robust revenue performance. Increased adoption of its product suite, particularly various artificial intelligence (AI) offerings and WIX Studio, has strengthened the company’s market position. Wix is emphasizing generative AI, a field projected to drive significant growth.
Product Enhancements Fuel Growth
Enhanced features and improvements in WIX Studio have contributed to its growing popularity. Company leaders noted that the number of Studio accounts and the influx of new Partners joining the Wix platform have exceeded expectations.
Optimistic Outlook for 2024
Following a successful second quarter, Wix management has increased their 2024 forecasts for bookings, revenues, and free cash flow. Projected revenues now stand at $1,747-$1,761 million, up from the earlier guidance of $1,738-$1,761 million. Total bookings are anticipated to be between $1,802 million and $1,822 million, slightly higher than the previous range of $1,796-$1,826 million.
Quarterly Earnings Expectations
Wix.com is expected to report quarterly earnings of $1.44 per share, reflecting a solid year-over-year increase of 30.9%. Revenue forecasts indicate an expected $443.27 million, marking a 12.6% rise compared to the same quarter last year.
Market Sentiment on Earnings Estimates
Earnings and revenue growth projections are critical for assessing stock potential. Research has demonstrated a strong link between earnings estimate revisions and short-term stock price movements. For Wix, the consensus EPS estimate has remained stable over the past month, suggesting sustained interest among investors. A stock typically struggles to maintain upward momentum without a trend in earnings estimate adjustments.
Current Status and Comparisons
Wix currently holds a Zacks Rank of #3 (Hold). In the same industry, Accenture (ACN) closed the last trading session up 0.5% to $357.30, although it has experienced a slight drop of 1.4% over the past month.
For Accenture, the consensus EPS estimate decreased by 0.3% over the past month to $3.39, which still shows a 3.7% increase from the previous year’s report. Accenture has a Zacks Rank of #2 (Buy).
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The views and opinions expressed herein are those of the author and do not necessarily reflect those of Nasdaq, Inc.
