VTEX to Report Q3 Earnings: Buy, Sell or Hold the Stock?

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VTEX VTEX is set to report its third-quarter 2024 results on Nov. 5.

It expects third-quarter 2024 revenues between $56 million and $57 million, indicating 18-20% year-over-year growth. 

The Zacks Consensus Estimate for third-quarter earnings has been steady at 2 cents per share over the past 30 days. VTEX reported a loss of 1 cent in the year-ago quarter.

The consensus mark for third-quarter revenues is pegged at $57.08 million, indicating an increase of 12.73% from the figure reported in the year-ago quarter.

VTEX Price and EPS Surprise

VTEX Price and EPS Surprise
VTEX Price and EPS Surprise

VTEX price-eps-surprise | VTEX Quote

 

Find the latest EPS estimates and surprises on Zacks Earnings Calendar.

Let’s see how things have shaped up for the upcoming announcement:

Factors to Consider

VTEX’s third-quarter 2024 results are expected to benefit from an expanding clientele across international markets, including Australia, Brazil, Chile, Colombia, Mexico, and Portugal.

Subscription revenues are expected to have grown in the third quarter, driven by an expanding clientele. In second-quarter 2024, subscription revenues increased 18.1% on a reported basis and 21.9% on a forex-neutral basis to $54 million.

Gross Merchandise Value increased 19.4% on a forex-neutral basis to $4.44 billion in second-quarter 2024. The momentum is expected to have continued in the to-be-reported quarter. 

The launch of a new version of the VTEX sales app that helps sales representatives identify consumers and access their complete online profile and purchase history with the brand is a notable development.

However, a challenging macroeconomic condition is expected to hurt VTEX’s growth in the to-be-reported quarter.

What Our Model Says

According to the Zacks model, the combination of a positive Earnings ESP and Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the exact case here.

VTEX has an Earnings ESP of 0.00% and carries a Zacks Rank #3. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Stocks to Consider

Here are a few companies worth considering, as our model shows that these have the right combination of elements to beat on earnings in their upcoming releases:

Arista Networks ANET has an Earnings ESP of +0.72% and a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.

Arista Networks shares have gained 26% year to date. ANET is set to report its third-quarter 2024 results on Nov. 7.

Ballard Power Systems BLDP has an Earnings ESP of +8.86% and a Zacks Rank #2 at present.

Ballard Power Systems shares have lost 56.2% year to date. BLDP is set to report its third-quarter fiscal 2025 results on Nov. 5.

Dynatrace DT has an Earnings ESP of +1.97% and has a Zacks Rank #3 at present.

Dynatrace shares have decreased 1.1% year to date. DT is set to report its second-quarter fiscal 2024 results on Nov. 7.