SPS Commerce (NASDAQ:SPSC) is set to give its latest quarterly earnings report on Thursday, 2024-10-24. Here's what investors need to know before the announcement.
Analysts estimate that SPS Commerce will report an earnings per share (EPS) of $0.83.
Investors in SPS Commerce are eagerly awaiting the company's announcement, hoping for news of surpassing estimates and positive guidance for the next quarter.
It's worth noting for new investors that stock prices can be heavily influenced by future projections rather than just past performance.
Past Earnings Performance
In the previous earnings release, the company beat EPS by $0.03, leading to a 1.64% increase in the share price the following trading session.
Here's a look at SPS Commerce's past performance and the resulting price change:
| Quarter | Q2 2024 | Q1 2024 | Q4 2023 | Q3 2023 |
|---|---|---|---|---|
| EPS Estimate | 0.77 | 0.73 | 0.69 | 0.67 |
| EPS Actual | 0.80 | 0.86 | 0.75 | 0.75 |
| Price Change % | 2.0% | 6.0% | 15.0% | -1.0% |
SPS Commerce Share Price Analysis
Shares of SPS Commerce were trading at $191.43 as of October 22. Over the last 52-week period, shares are up 22.85%. Given that these returns are generally positive, long-term shareholders should be satisfied going into this earnings release.
Analyst Insights on SPS Commerce
Understanding market sentiments and expectations within the industry is crucial for investors. This analysis delves into the latest insights on SPS Commerce.
The consensus rating for SPS Commerce is Buy, derived from 7 analyst ratings. An average one-year price target of $221.43 implies a potential 15.67% upside.
Analyzing Ratings Among Peers
In this comparison, we explore the analyst ratings and average 1-year price targets of AppFolio, Confluent and CCC Intelligent Solutions, three prominent industry players, offering insights into their relative performance expectations and market positioning.
AppFolio is maintaining an Outperform status according to analysts, with an average 1-year price target of $300.0, indicating a potential 56.72% upside. Confluent received a Buy consensus from analysts, with an average 1-year price target of $29.87, implying a potential 84.4% downside. CCC Intelligent Solutions received a Buy consensus from analysts, with an average 1-year price target of $14.0, implying a potential 92.69% downside. Key Findings: Peer Analysis Summary
The peer analysis summary presents essential metrics for AppFolio, Confluent and CCC Intelligent Solutions, unveiling their respective standings within the industry and providing valuable insights into their market positions and comparative performance.
| Company | Consensus | Revenue Growth | Gross Profit | Return on Equity |
|---|---|---|---|---|
| SPS Commerce | Buy | 17.77% | $101.58M | 2.60% |
| AppFolio | Outperform | 34.20% | $127.77M | 8.35% |
| Confluent | Buy | 24.14% | $170.00M | -10.46% |
| CCC Intelligent Solutions | Buy | 9.88% | $177.30M | 1.10% |
Key Takeaway:
SPS Commerce ranks at the top for Revenue Growth among its peers. It is in the middle for Gross Profit. SPS Commerce is at the bottom for Return on Equity.
Delving into SPS Commerce's Background
SPS Commerce Inc is a provider of cloud-based supply chain management services for retailers, grocers, distributors, suppliers, and logistics firms to increase supply chain performance, optimize inventory levels and sell-through, reduce operational costs, improve order visibility, and satisfy consumer demands for a seamless omnichannel experience. Its solutions are delivered through the SPS Commerce platform and provide integrations and retail performance analytics to its customers. Its products are; Fulfillment, Analytics, and Other products like Assortment and Community also it provides one-time services such as professional services and testing and certification. The group derives revenue from recurring monthly fees and set-up fees.
Unraveling the Financial Story of SPS Commerce
Market Capitalization Analysis: Reflecting a smaller scale, the company's market capitalization is positioned below industry averages. This could be attributed to factors such as growth expectations or operational capacity.
Revenue Growth: SPS Commerce's revenue growth over a period of 3 months has been noteworthy. As of 30 June, 2024, the company achieved a revenue growth rate of approximately 17.77%. This indicates a substantial increase in the company's top-line earnings. In comparison to its industry peers, the company trails behind with a growth rate lower than the average among peers in the Information Technology sector.
Net Margin: SPS Commerce's net margin is impressive, surpassing industry averages. With a net margin of 11.74%, the company demonstrates strong profitability and effective cost management.
Return on Equity (ROE): SPS Commerce's ROE excels beyond industry benchmarks, reaching 2.6%. This signifies robust financial management and efficient use of shareholder equity capital.
Return on Assets (ROA): The company's ROA is a standout performer, exceeding industry averages. With an impressive ROA of 2.13%, the company showcases effective utilization of assets.
Debt Management: The company maintains a balanced debt approach with a debt-to-equity ratio below industry norms, standing at 0.02.
To track all earnings releases for SPS Commerce visit their earnings calendar on our site.
This article was generated by Benzinga's automated content engine and reviewed by an editor.
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