Should You Buy GigaCloud Technology (GCT) Ahead of Q1 Earnings?

Shuvra Shankar Dey

8 May 2024 at 11:24 am·3-min read

GigaCloud Technology Inc. Price and EPS Surprise

GigaCloud Technology Inc. GCT will report its first-quarter 2024 results on May 9, before the bell.

Let’s check out how GCT is currently doing.

Stock Looks Cheap Despite Massive Price Rise

The stock has gained a massive 100% year to date, significantly outperforming the 13.1% rally of the industry it belongs to. But GCT is still trading at a forward sales multiple of 13.8X, significantly below the industry’s 39.41X.

Company Well Poised on Recent Acquisitions

In late 2023, GCT completed the acquisitions of Noble House and Wondersign, significantly advancing its position as a full-service end-to-end B2B solution provider in the large marketplace. The buyouts have empowered the company to enhance its footprint across various geographies, diversify its product range with premium stock-keeping units, integrate cutting-edge technology, and extend its business network, all contributing to its strengthened presence and capabilities.

Sales Healthy on Strong Demand

GCT integrates its supplier-fulfilled retailing business model with research and development aimed at harnessing advanced algorithms to further refine its strong cloud infrastructure. This strategic fusion enables the company to provide a superior B2B selling and sourcing experience for all involved in the marketplace. Addressing the rising demand for large parcel merchandise, GCT has witnessed notable growth in GigaCloud Marketplace GMV, sales volume, and the number of buyers and sellers. Sales surged 95% year over year in the fourth quarter of 2023.

Sales and EPS Growth Prospects Strong

The Zacks Consensus Estimate for revenues in the to-be-reported quarter is pegged at $235 million, indicating a more than 83.9% increase from the year-ago quarter’s actual figure. The consensus estimate for the bottom line is pegged at 51 cents per share, indicating 30.8% year-over-year growth. The estimate for EPS has remained unchanged over the past 30 days.

The consensus mark for GCT’s 2024 sales stands at $1.11 billion, suggesting year-over-year growth of 57%. The estimate for EPS has remained unchanged over the past 30 days at $2.98, suggesting year-over-year growth of 29.7%.

GigaCloud Technology Inc. Price and EPS Surprise

GigaCloud Technology Inc. price-eps-surprise | GigaCloud Technology Inc. Quote

To Conclude

GCT looks like a compelling buy ahead of its first-quarter results as it is trading dirt cheap when compared to its industry, and both top and bottom-line growth prospects look healthy for the current year.

GCT currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Recent Earnings Snapshots of Some Service Providers

Omnicom OMC reported impressive first-quarter 2024 results, wherein both earnings and revenues beat the Zacks Consensus Estimate.

OMC’s earnings of $1.67 per share beat the consensus estimate by 9.9% and increased 7.1% year over year. Total revenues of $3.6 billion surpassed the consensus estimate by 1.6% and increased 5.4% year over year.

Equifax EFX reported mixed first-quarter 2024 results, wherein earnings surpassed the Zacks Consensus Estimate, but revenues missed the same.

EFX’s adjusted earnings were $1.5 per share, ahead of the Zacks Consensus Estimate by 4.2% and up 4.9% from the year-ago quarter. Total revenues of $1.4 billion missed the consensus estimate by a slight margin but increased 6.7% from the year-ago quarter.

ManpowerGroup MAN reported mixed first-quarter 2024 results, with earnings beating the Zacks Consensus Estimate but revenues missing the same.

Quarterly adjusted earnings of 94 cents per share surpassed the consensus mark by 4.4% but declined 41.6% year over year. Revenues of $4.4 billion lagged the consensus mark by 0.6% and fell 7% year over year.

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ManpowerGroup Inc. (MAN) : Free Stock Analysis Report

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