Coupang Earnings: What To Look For From CPNG
E-commerce marketplace Coupang (NYSE:CPNG) will be announcing earnings results tomorrow after the bell. Here's what investors should know.
Last quarter Coupang reported revenues of $6.18 billion, up 21.2% year on year, beating analyst revenue expectations by 4.2%. It was a mixed quarter for the company, with a decent beat of analysts' revenue estimates. On the other hand, EPS fell below expectations.
Is Coupang buy or sell heading into the earnings? Read our full analysis here, it's free.
This quarter analysts are expecting Coupang's revenue to grow 20.3% year on year to $6.41 billion, improving on the 4.9% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.06 per share.
Majority of analysts covering the company have reconfirmed their estimates over the last thirty days, suggesting they are expecting the business to stay the course heading into the earnings. The company missed Wall St's revenue estimates five times over the last two years.
Looking at Coupang's peers in the online marketplace segment, some of them have already reported Q4 earnings results, giving us a hint of what we can expect. MercadoLibre delivered top-line growth of 41.9% year on year, beating analyst estimates by 2.7% and Remitly reported revenues up 38.6% year on year, exceeding estimates by 1.3%. MercadoLibre traded down 8.1% on the results, and Remitly was up 11.6%.
Read our full analysis of MercadoLibre's results here and Remitly's results here.
Investors in the online marketplace segment have had steady hands going into the earnings, with the stocks down on average 1.3% over the last month. Coupang is up 12.9% during the same time, and is heading into the earnings with analyst price target of $20.8, compared to share price of $16.4.
Today’s young investors likely haven’t read the timeless lessons in Gorilla Game: Picking Winners In High Technology because it was written more than 20 years ago when Microsoft and Apple were first establishing their supremacy. But if we apply the same principles, then enterprise software stocks leveraging their own generative AI capabilities may well be the Gorillas of the future. So, in that spirit, we are excited to present our Special Free Report on a profitable, fast-growing enterprise software stock that is already riding the automation wave and looking to catch the generative AI next.
