JD.com (JD) to Release Q2 Earnings: What's in the Offing?
JD.com, Inc. JD is slated to report second-quarter 2023 results on Aug 16.
For the second quarter, the Zacks Consensus Estimate for revenues is pegged at $39.25 billion, indicating a decline of 1.8% from the year-ago quarter’s reported figure.
The consensus mark for earnings is pegged at 73 cents per share, suggesting 19.7% growth from the prior-year quarter’s number.
JD.com surpassed the Zacks Consensus Estimate in all the trailing four quarters, delivering an earnings surprise of 29.93% on average.
JD.com, Inc. Price and EPS Surprise
JD.com, Inc. price-eps-surprise | JD.com, Inc. Quote
Factors to Note
The company’s strong momentum across the JD Retail segment is expected to have been the key growth driver in the second quarter.
Strengthening omnichannel offerings of JD are also expected to get reflected in its quarterly results.
The company’s strong efforts to offer services at the best price on the back of its scale and lower procurement costs from suppliers are expected to have been tailwinds.
JD.com’s strong relationships with high-end brands might have contributed well. The recent flagship stores of Tesla and Longines on JD.com are expected to have continued to benefit JD Retail’s second-quarter performance.
Apart from retail efforts, the impacts of the rising momentum of JD Health on the heels of 24/7 free online medical consultation and online pharmacy retail services are expected to get reflected in the company’s to-be-reported quarter’s results.
Solid momentum across JD Logistics on the back of the growing network of domestic and overseas warehouses and transportation is expected to have contributed well.
The opening of a third self-operating warehouse and distribution center in California, United States, might have continued bolstering the logistic capabilities of the company.
The company’s expanding quick delivery services in the lower-tier cities are likely to have aided JD Logistics in gaining traction in these cities in the second quarter. The strengthening of the logistics network in these cities is anticipated to have contributed to the quarter’s performance.
However, softness in the new businesses segment is expected to have negatively impacted top-line growth during the quarter under review.
JD’s mounting fulfillment expenses, including procurement, warehousing, delivery, customer service and payment processing expenses, are likely to have weighed on its second-quarter performance.
Rising marketing and R&D costs are expected to have hindered JD.com’s margin expansion.
What Our Model Says
Our proven model does not conclusively predict an earnings beat for JD.com this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here.
JD.com has an Earnings ESP of -0.69%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Currently JD carries a Zacks Rank #2.
Stocks to Consider
Here are some stocks that you may consider, as our model shows that they have the right combination of elements to beat on earnings.
Bilibili BILI has an Earnings ESP of +2.44% and a Zacks Rank #3 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Bilibili is scheduled to release second-quarter 2023 results on Aug 17. The Zacks Consensus Estimate for BILI’s loss is pegged at 41 cents per share. The company had reported a loss of 75 cents per share in the year-ago quarter.
Walmart WMT has an Earnings ESP of +1.07% and currently carries a Zacks Rank #2.
Walmart is set to report second-quarter fiscal 2024 results on Aug 17. The Zacks Consensus Estimate for WMT’s earnings is pinned at $1.68 per share.
Bank of Montreal BMO has an Earnings ESP of +1.91% and a Zacks Rank #3 at present.
Bank of Montreal is scheduled to report third-quarter fiscal 2023 results on Aug 29. The Zacks Consensus Estimate for BMO’s earnings is pegged at $2.27 per share.
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