BigCommerce Q2 Earnings Preview: Revenue Growth Expected to Slow Down

BigCommerce is set to report Q2 earnings on Thursday, with analysts expecting revenue to grow 1.8% YoY to $83.32 million and adjusted earnings of $0.04 per share. The company has met or beaten revenue expectations in the past, but has missed Wall Street's revenue estimates twice in the last two years. The sales and marketing software segment has seen positive sentiment, with share prices up 2.4% on average over the last month.

Title: BigCommerce Prepares for Q2 Earnings: What Investors Should Know

BigCommerce (NASDAQ: BIGC) is set to report its Q2 earnings on Thursday, with analysts expecting revenue to grow 1.8% year over year (YoY) to $83.32 million, and adjusted earnings of $0.04 per share. The company has met or beaten revenue expectations in the past, but has missed Wall Street's revenue estimates twice in the last two years. The sales and marketing software segment has seen positive sentiment, with share prices up 2.4% on average over the last month.

Analysts are expecting BigCommerce's revenue to grow 1.8% YoY to $83.32 million, slowing from the 8.5% increase it recorded in the same quarter last year [1]. Adjusted earnings are expected to come in at $0.04 per share. The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings.

BigCommerce has missed Wall Street’s revenue estimates twice over the last two years. Looking at BigCommerce’s peers in the sales and marketing software segment, some have already reported their Q2 results, giving us a hint as to what we can expect. VeriSign delivered year-on-year revenue growth of 5.9%, meeting analysts’ expectations, and Freshworks reported revenues up 17.5%, topping estimates by 2.9% [1].

Celestica (CLS) and Exelixis (EXEL) are two highly ranked stocks that are worthy of consideration after exceeding their Q2 earnings expectations on Monday evening. Celestica's Q2 sales came in at $2.89 billion, spiking 21% from $2.39 billion a year ago and comfortably surpassing estimates of $2.67 billion by 8%. More impressive, Celestica’s Q2 earnings soared 53% YoY to $1.39 per share from EPS of $0.91 in the prior period and topped expectations of $1.24 by 12% [2]. Exelixis posted Q2 EPS of $0.75, beating the Zacks Consensus of $0.65 by 15% despite dipping from $0.84 a share in the comparative period. This came on sales of $568.26 million, which missed estimates of $578.91 million and was down from $637.18 million in Q2 2024 [2].

When a company has more cash than it knows what to do with, buying back its own shares can make a lot of sense–as long as the price is right. Luckily, we’ve found one, a low-priced stock that is gushing free cash flow AND buying back shares [1]. BigCommerce is up 3.4% during the same time and is heading into earnings with an average analyst price target of $7.56 (compared to the current share price of $5.17).

Investors looking for a momentum stock that could be in store for higher highs may want to consider Celestica (CLS), while those looking for a buy-the-dip target have an intriguing option with Exelixis (EXEL). Most importantly, these highly ranked stocks have proven to be very viable investment options thanks to their prominence among the tech and medical sectors, respectively [2].

References

[1] https://finance.yahoo.com/news/bigcommerce-bigc-q2-earnings-expect-032106401.html
[2] https://www.nasdaq.com/articles/2-highly-ranked-stocks-consider-after-q2-earnings-cls-exel