Shopify (SHOP) Q1 Earnings Lag Estimates

Core Insights - Shopify reported quarterly earnings of $0.25 per share, missing the Zacks Consensus Estimate of $0.26 per share, but showing an increase from $0.20 per share a year ago, resulting in an earnings surprise of -3.85% [1] - The company posted revenues of $2.36 billion for the quarter ended March 2025, surpassing the Zacks Consensus Estimate by 1.32%, and up from $1.86 billion year-over-year [2] - Shopify shares have declined approximately 11.1% since the beginning of the year, compared to a decline of -4.3% for the S&P 500 [3] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.32 on revenues of $2.49 billion, and for the current fiscal year, it is $1.45 on revenues of $10.69 billion [7] - The estimate revisions trend for Shopify is mixed, leading to a Zacks Rank 3 (Hold), indicating expected performance in line with the market in the near future [6] Industry Context - The Internet - Services industry, to which Shopify belongs, is currently in the bottom 40% of over 250 Zacks industries, suggesting potential challenges for stock performance [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5]