Fiverr International (FVRR) Declines More Than Market: Some Information for Investors

Core Viewpoint - Fiverr International's stock performance has been underwhelming recently, with a notable decline compared to broader market indices, yet upcoming earnings projections indicate potential growth in both earnings per share (EPS) and revenue [1][2][3]. Company Performance - Fiverr's stock closed at $22.10, reflecting a decrease of 2.69% from the previous day, underperforming the S&P 500, which fell by 0.63% [1]. - Over the past month, Fiverr's shares have decreased by 6.74%, which is worse than the Retail-Wholesale sector's decline of 4.1% and the S&P 500's gain of 0.92% [2]. Earnings Projections - The upcoming EPS for Fiverr is projected at $0.7, representing a 9.38% increase year-over-year, while revenue is expected to reach $108.04 million, indicating an 8.44% increase compared to the same quarter last year [3]. - For the full year, earnings are estimated at $2.8 per share and revenue at $432.78 million, reflecting increases of 17.65% and 10.55% respectively from the prior year [4]. Analyst Sentiment - Recent revisions to analyst estimates for Fiverr suggest a positive outlook, with upward adjustments indicating optimism about the company's business and profitability [4]. - The Zacks Rank system currently rates Fiverr as 1 (Strong Buy), with a 5.69% upward shift in the consensus EPS estimate over the past month [6]. Valuation Metrics - Fiverr's Forward P/E ratio stands at 8.13, which is significantly lower than the industry average Forward P/E of 21.91, suggesting a valuation discount [7]. - The Internet - Commerce industry, to which Fiverr belongs, ranks in the top 32% of all industries according to the Zacks Industry Rank [7].