VTEX (VTEX) Meets Q3 Earnings Estimates

VTEX (VTEX) reported its quarterly earnings, showing a figure of $0.02 per share, which aligns perfectly with the Zacks Consensus Estimate. This represents a turnaround from a loss of $0.01 per share reported during the same period last year. The earnings reported are adjusted for non-recurring items.

In the previous quarter, expectations were set for VTEX to post a loss of $0.01 per share, but it surprised investors by delivering earnings of $0.03 per share, resulting in a remarkable surprise of 400%.

In the last four quarters, VTEX has successfully surpassed consensus EPS estimates on three occasions.

Focusing on revenue, VTEX recorded $56 million for the quarter ending September 2024, which missed the Zacks Consensus Estimate by 1.89%. This is an improvement from the year-ago revenue of $50.63 million. Over the past four quarters, the company exceeded consensus revenue estimates two times.

Going forward, the immediate price movement of VTEX’s stock, influenced by the latest financial figures and upcoming earnings expectations, will largely depend on insights shared by management during the earnings call.

Since the beginning of the year, VTEX shares have experienced a decline of approximately 0.3%, while the S&P 500 has gained 19.8%. This raises the question among investors about what lies ahead for the stock.

Future Outlook for VTEX

Despite VTEX's recent performance trailing behind the market, it leaves investors pondering the future trajectory of the stock.

There aren't definitive answers to this crucial question. However, one effective tool for investors is tracking the company's earnings outlook, which encompasses current consensus earnings expectations for upcoming quarters and how these projections have shifted over time.

According to research, there is a strong relationship between short-term stock movements and trends in revisions of earnings estimates. Investors can monitor these revisions on their own or make use of reliable rating systems such as the Zacks Rank, known for effectively utilizing earnings estimate revisions.

Before this earnings announcement, the trend for estimate revisions for VTEX was mixed. While there could be changes in the magnitude and direction of these revisions following the recent earnings report, the current status still reflects a Zacks Rank of #3 (Hold) for the stock. This suggests that VTEX is expected to perform in line with the market in the near term. More details about today's Zacks #1 Rank (Strong Buy) stocks can be found here.

It will be intriguing to observe how estimates for the upcoming quarters and the current fiscal year evolve in the immediate future. Presently, the consensus EPS prediction stands at $0.04 on $67.66 million in revenues for the next quarter, while the current fiscal year’s estimate is $0.07 on $233.92 million in revenues.

It is also important for investors to recognize that the broader industry’s outlook can significantly influence the stock's performance. At this moment, the Zacks Industry Rank places Internet - Software in the top 26% of over 250 Zacks industries. Historical data shows that the top 50% of Zacks-ranked industries tend to outperform the bottom 50% by more than double.

Additionally, another corporation from the same sector, Soho House & Co (SHCO), has not yet announced its results for the quarter ended September 2024. This company, which operates members-only luxurious hotels and clubs under the Soho House brand, is projected to post a quarterly loss of $0.01 per share, indicating a year-over-year improvement of +95.5%. The consensus EPS estimate remains unchanged over the last 30 days, while revenue expectations are set at $334.62 million, reflecting a growth of 11.2% from the previous year.

VTEX, Earnings, Stocks