SPS Commerce (SPSC) Surpasses Q3 Earnings and Revenue Estimates

Company Performance - SPS Commerce reported quarterly earnings of $0.92 per share, exceeding the Zacks Consensus Estimate of $0.83 per share, and up from $0.75 per share a year ago, representing an earnings surprise of 10.84% [1] - The company achieved revenues of $163.69 million for the quarter ended September 2024, surpassing the Zacks Consensus Estimate by 2.22% and increasing from $135.66 million year-over-year [1] - Over the last four quarters, SPS Commerce has consistently surpassed consensus EPS and revenue estimates [1] Future Outlook - The stock's immediate price movement will largely depend on management's commentary during the earnings call and the sustainability of earnings expectations [2][3] - Current consensus EPS estimate for the upcoming quarter is $0.89 on revenues of $167.28 million, and for the current fiscal year, it is $3.39 on revenues of $630.6 million [4] - The estimate revisions trend for SPS Commerce is mixed, resulting in a Zacks Rank 3 (Hold), indicating expected performance in line with the market [4] Industry Context - The Business - Services industry, to which SPS Commerce belongs, is currently in the bottom 40% of over 250 Zacks industries, which may impact stock performance [5] - Another company in the same industry, APi, is expected to report quarterly earnings of $0.51 per share, reflecting a year-over-year increase of 6.3%, with revenues projected at $1.86 billion, up 4% from the previous year [5]