SPS Commerce (NASDAQ:SPSC) will release its quarterly earnings report on Thursday, 2025-04-24. Here's a brief overview for investors ahead of the announcement.
Analysts anticipate SPS Commerce to report an earnings per share (EPS) of $0.85.
The announcement from SPS Commerce is eagerly anticipated, with investors seeking news of surpassing estimates and favorable guidance for the next quarter.
It's worth noting for new investors that guidance can be a key determinant of stock price movements.
Past Earnings Performance
During the last quarter, the company reported an EPS beat by $0.02, leading to a 13.8% drop in the share price on the subsequent day.
Here's a look at SPS Commerce's past performance and the resulting price change:
| Quarter | Q4 2024 | Q3 2024 | Q2 2024 | Q1 2024 |
|---|---|---|---|---|
| EPS Estimate | 0.87 | 0.83 | 0.77 | 0.73 |
| EPS Actual | 0.89 | 0.92 | 0.80 | 0.86 |
| Price Change % | -14.000000000000002% | -11.0% | 2.0% | 6.0% |
Tracking SPS Commerce's Stock Performance
Shares of SPS Commerce were trading at $129.72 as of April 22. Over the last 52-week period, shares are down 21.18%. Given that these returns are generally negative, long-term shareholders are likely bearish going into this earnings release.
Analyst Insights on SPS Commerce
For investors, staying informed about market sentiments and expectations in the industry is paramount. This analysis provides an exploration of the latest insights on SPS Commerce.
SPS Commerce has received a total of 8 ratings from analysts, with the consensus rating as Buy. With an average one-year price target of $194.88, the consensus suggests a potential 50.23% upside.
Peer Ratings Comparison
In this comparison, we explore the analyst ratings and average 1-year price targets of MARA Holdings, Informatica and Q2 Holdings, three prominent industry players, offering insights into their relative performance expectations and market positioning.
- Analysts currently favor an Buy trajectory for MARA Holdings, with an average 1-year price target of $21.8, suggesting a potential 83.19% downside.
- Analysts currently favor an Neutral trajectory for Informatica, with an average 1-year price target of $22.29, suggesting a potential 82.82% downside.
- Analysts currently favor an Buy trajectory for Q2 Holdings, with an average 1-year price target of $112.38, suggesting a potential 13.37% downside.
Insights: Peer Analysis
Within the peer analysis summary, vital metrics for MARA Holdings, Informatica and Q2 Holdings are presented, shedding light on their respective standings within the industry and offering valuable insights into their market positions and comparative performance.
| Company | Consensus | Revenue Growth | Gross Profit | Return on Equity |
|---|---|---|---|---|
| SPS Commerce | Buy | 17.90% | $115.32M | 2.09% |
| MARA Holdings | Buy | 36.76% | $-52.79M | 15.13% |
| Informatica | Neutral | -3.79% | $348.37M | 0.41% |
| Q2 Holdings | Buy | 12.91% | $96.34M | 0.03% |
Key Takeaway:
SPS Commerce ranks at the top for Revenue Growth and Gross Profit among its peers. It is in the middle 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 subscription-based recurring revenue services.
Unraveling the Financial Story of SPS Commerce
Market Capitalization Analysis: Falling below industry benchmarks, the company's market capitalization reflects a reduced size compared to peers. This positioning may be influenced by 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 31 December, 2024, the company achieved a revenue growth rate of approximately 17.9%. 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: The company's net margin is a standout performer, exceeding industry averages. With an impressive net margin of 10.27%, the company showcases strong profitability and effective cost control.
Return on Equity (ROE): The company's ROE is a standout performer, exceeding industry averages. With an impressive ROE of 2.09%, the company showcases effective utilization of equity capital.
Return on Assets (ROA): The company's ROA is a standout performer, exceeding industry averages. With an impressive ROA of 1.73%, 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 0.01.
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.