Pinduoduo (PDD) to Report Q4 Earnings: What's in the Offing?
Pinduoduo Inc. PDD is scheduled to report fourth-quarter 2023 results on Mar 20.
For the fourth quarter, the Zacks Consensus Estimate for sales is pegged at $11.99 billion, indicating growth of 107.6% from the prior-year quarter’s reported figure.
The consensus mark for earnings per share is pinned at $1.62, suggesting growth of 33.9% from the year-ago quarter’s reported number.
Pinduoduo’s earnings surpassed the Zacks Consensus Estimate in the trailing four quarters, the average surprise being 26.5%.
PDD Holdings Inc. Price and EPS Surprise
PDD Holdings Inc. price-eps-surprise | PDD Holdings Inc. Quote
Factors to Note
Strong consumer interests across different categories like agriculture produce, FMCG, household electronics and cosmetics are likely to have been a tailwind.
The company’s continuous efforts to strengthen the agriculture and grocery businesses are expected to have contributed well to the top line in the fourth quarter.
Strengthening partnerships with local communities, shops, farmers and agri-merchants are anticipated to have aided its performance in the quarter under review.
Pinduoduo’s strength across the e-commerce business is likely to have contributed well to the fourth-quarter performance.
The company’s growing 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.
However, increasing expenditure for online and offline advertisements, as well as promotional activities, is likely to 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 does not 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 is not the case here.
Pinduoduo currently has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.
PDD has a Zacks Rank #2 at present.
Stocks to Consider
Here are some companies that have the right combination of elements to post an earnings beat this time around.
FactSet Research Systems FDS has an Earnings ESP of +0.59% and a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
FactSet Research Systems is scheduled to release second-quarter fiscal 2024 results on Mar 21. The Zacks Consensus Estimate for FDS’s earnings is pegged at $3.83 per share, suggesting a jump of 0.8% from the prior-year quarter’s reported figure.
Carnival CCL has an Earnings ESP of +6.26% and a Zacks Rank of #2 at present.
Carnival is set to announce fourth-quarter 2023 results on Mar 27. The Zacks Consensus Estimate for CCL’s loss is pinned at 17 cents per share, indicating growth of 69.1% from the year-ago quarter’s reported figure.
lululemon athletica LULU has an Earnings ESP of +0.45% and a Zacks Rank #3 at present.
lululemon athletica is scheduled to release fourth-quarter 2023 results on Mar 21. The Zacks Consensus Estimate for LULU’s earnings is pegged at $5.01 per share, suggesting a jump of 13.9% from the prior-year quarter’s reported figure.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
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Carnival Corporation (CCL) : Free Stock Analysis Report
lululemon athletica inc. (LULU) : Free Stock Analysis Report
FactSet Research Systems Inc. (FDS) : Free Stock Analysis Report
PDD Holdings Inc. (PDD) : Free Stock Analysis Report
