Pinduoduo (PDD) to Report Q2 Earnings: What's in the Offing?
Pinduoduo Inc. PDD is scheduled to report second-quarter 2023 results on Aug 29.
For the second quarter, the Zacks Consensus Estimate for sales is pegged at $6.14 billion, indicating growth of 30.8% from the prior-year quarter’s reported figure.
The consensus mark for earnings per share is pinned at $1.12, suggesting a decline of 0.9% from the year-ago quarter’s reported number.
Pinduoduo’s earnings surpassed the Zacks Consensus Estimate in all the trailing four quarters, the average surprise being 78.7%.
PDD Holdings Inc. Price and EPS Surprise
PDD Holdings Inc. price-eps-surprise | PDD Holdings Inc. Quote
Factors to Note
The company’s strength across the e-commerce business is likely to have contributed significantly to the second quarter’s performance.
Pinduoduo’s strengthening efforts toward the integration of online traffic with offline retail experiences are likely to get reflected in the upcoming results.
A strong momentum across its online marketing and transaction services is expected to have continued driving top-line growth in the quarter under review.
Increasing advertising demand from merchants on PDD’s platform is anticipated to have benefited the company in the to-be-reported quarter.
Its strong consumer interest across different categories like agriculture produce, FMCG, household electronics and cosmetics is likely to have been a tailwind.
The company’s continuous efforts to strengthen agriculture and grocery businesses are expected to have contributed well to the top line in the quarter under discussion.
Strengthening partnerships with local communities, shops, farmers and agri-merchants are expected to have aided its performance in the quarter under review.
However, increasing expenditure for online and offline advertisements as well as promotional activities might have affected the quarterly performance.
Increasing payment processing fees, higher costs for cloud services and expenses associated with online marketing services are expected to have been concerning.
What Our Model Says
Our proven model doesn’t conclusively predict an earnings beat for Pinduoduo 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.
Pinduoduo currently has an Earnings ESP of -0.89%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
PDD has a Zacks Rank #3.
Stocks to Consider
Here are some companies that have the right combination of elements to post an earnings beat this quarter.
American Eagle Outfitters AEO has an Earnings ESP of +8.52% and a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
American Eagle Outfitters is scheduled to release second-quarter fiscal 2023 results on Sep 6. The Zacks Consensus Estimate for AEO’s earnings is pegged at 15 cents per share, which indicates a significant jump from 4 cents per share reported in the year-ago quarter.
American Woodmark AMWD has an Earnings ESP of +8.43% and currently carries a Zacks Rank #2.
American Woodmark is set to report first-quarter fiscal 2024 results on Aug 29. The Zacks Consensus Estimate for AMWD’s earnings is pinned at $2.20 per share, indicating growth of 28.6% from the prior-year quarter.
Bank of Montreal BMO has an Earnings ESP of +3% 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.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
American Eagle Outfitters, Inc. (AEO) : Free Stock Analysis Report
Bank Of Montreal (BMO) : Free Stock Analysis Report
American Woodmark Corporation (AMWD) : Free Stock Analysis Report
PDD Holdings Inc. (PDD) : Free Stock Analysis Report
