AUS
NZ
UK
CA
USA
FRA
GER
ESP
ITA
NLD
PRT
SWE
GRC
IND
POL
BRA
ZAF
RUS
CHN
UAE
Summary
- Analysts have pegged Shopify’s Q4 revenues at around $900 million, up 75%.
- Walmart’s earnings were projected at $1.47 per share, up 6.5%.
- Shopify’s blockbuster $5.1 billion Black Friday sales to reflect in Q4 earnings.
Shopify Inc. (NYSE:SHOP) and Walmart Inc. (NYSE:WMT) are expected to report their fourth-quarter earnings next week. Both the companies were expected to have performed relatively well in the quarter, supported by their increased online sales volume. Although Walmart's stock value has seen a decline in recent times, losing around 2% in the past month, analysts rated highly on the company performance and potential growth in 2021.
Here’s a look at what to expect.
Shopify Inc. (NYSE:SHOP)
Shopify Inc. (NYSE:SHOP) will present its fourth-quarter earnings report on February 17, 2021. It has not provided a forward-looking statement to its investors yet due to the COVID crisis, but the eCommerce growth seen during the lockdown is likely to have a positive reflection in its Q4 earnings.
Some experts have pegged Shopify’s Q4 revenue at around $900 million, which means an over 75% increase from the same period a year ago. Analysts have predicted earnings of $1.21 per share.
Shopify’s blockbuster $5.1 billion sales, during the Black Friday/Cyber Monday 2020 weekend, was up 76%, compared to the figures in the previous year. This robust sale is expected to have led its Q4 earnings. But the company also had surpassed previous expectations in consecutive quarters, which makes it possible that it might report a higher growth than what has been forecast now.
Besides holiday sales, Shopify has seen increased online transactions, backed by Shopify POS, the contactless payment hardware, which include Shopify Tap and Chip Card Reader. It also launched a merchant app to enhance the shopping experience, which may have boosted revenue collection.
Also, Shopify’s simplified applications, such as Shopify Payments, and Shopify Shipping, would have contributed to the fourth-quarter results. Shopify stocks (NYSE:SHOP) were trading at US$1455 in the previous close, which was around a 20 percent increase in a month. Furthermore, Shopify’s partnerships with Facebook and Walmart may have positively contributed to Q4 earnings.
Shopify has a market cap of around $161 billion.
Pic Credit: Pixabay
Walmart Inc. (NYSE:WMT)
Walmart Inc is expected to report its Q4 earnings on February 18, 2021. Experts peg a sales growth of about 3.3% to around $146 billion from the corresponding period a year ago.
The retailer is expected to earn $1.47 per share, up 6.52%, from the same period in 2019. Its current forward P/E ratio is 24.91, while the industry average is 21.47, indicating that it might be trading at a premium. These estimates were based on the markets’ optimism about the company’s performance.
Walmart has beefed up its online platform during the COVID crisis, which may have helped offset losses from retail stores, which had to be closed during the lockdown. Besides, it has also launched a subscription scheme on the lines of Amazon, which may have helped add more regular customers.
These actions may have a positive impact on its Q4 earnings. The traditional brick-and-mortar retail sector is estimated to have incurred huge losses in the early phase of the pandemic but recovered in the second half of 2020. Markets, however, have reposed their faith in Walmart’s growth potential.
Walmart has a market cap of around US$408 billion.
