Lightspeed Commerce Shows Strong EPS Growth Ahead of Earnings

Lightspeed Commerce Inc. is projected to report a significant EPS increase of 150% in its upcoming earnings disclosure. With a Zacks Rank of #1 (Strong Buy) and robust revenue projections, investor sentiment may lead to positive stock movements, despite a recent decline.

Date: 01-10-2024

AI Rating: 7

In the recent trading session, Lightspeed Commerce Inc. (LSPD) experienced a decline of -1.61%, underperforming compared to the S&P 500's gain of 0.42%. However, it's important to note that the stock has performed impressively over the past month, gaining 30.12%, significantly outpacing the Business Services sector's increase of 4.34% and the S&P 500's 2.06% rise.

The upcoming earnings disclosure is crucial for investors, as the estimated Earnings Per Share (EPS) stands at $0.10, reflecting an impressive 150% increase year-over-year. Significantly, the consensus estimate for revenue points to net sales of $274.03 million, which translates to a 19.01% increase from the previous year's figures. Additionally, for the annual outlook, anticipated earnings of $0.36 per share represent a 125% increase, while revenues of $1.1 billion signal a remarkable growth of +20.69% year-over-year.

Investors should also monitor any adjustments to analyst estimates, as these revisions are often indicative of evolving business dynamics. The Zacks Rank suggests that positive estimate revisions can signal a favorable outlook for the company's performance, with LSPD currently holding a Zacks Rank of #1 (Strong Buy), which typically indicates a robust investment opportunity.

From a valuation standpoint, LSPD's Forward P/E ratio of 46.3 shows a premium over the industry's average of 25.11, which may suggest that investors have high expectations for future growth. The PEG ratio, standing at 1.39, is also favorable compared to the industry's average of 1.5. This indicates that while the stock may be relatively expensive, it is justified by its expected earnings growth.

Overall, although the recent trading session saw a decline in stock price, the substantial growth expected in earnings and revenue, coupled with a strong Zacks Rank, paints a positive picture for Lightspeed Commerce moving forward.

Stocks: LSPD