Vipshop (VIPS) to Post Q4 Earnings: What's in the Offing?
Vipshop Holdings Limited VIPS is set to report fourth-quarter 2023 results on Feb 28.
VIPS expects fourth-quarter total net revenues between RMB 31.8 billion and RMB 33.3 billion, indicating growth of 0-5% from the prior-year quarter’s reported figure.
The Zacks Consensus Estimate for revenues is pegged at $4.66 billion, suggesting growth of 1.2% from the year-ago reported figure.
The consensus mark for earnings per share is pegged at 74 cents per share, indicating growth of 39.6% from the prior-year reported figure.
Vipshop’s earnings surpassed the Zacks Consensus Estimate in the trailing four quarters, the average earnings surprise being 20.01%.
Vipshop Holdings Limited Price and EPS Surprise
Vipshop Holdings Limited price-eps-surprise | Vipshop Holdings Limited Quote
Key Factors at Play
Improvement in the consumer spending pattern in discretionary categories is expected to have been a tailwind for Vipshop in the quarter under review.
The company’s growing efforts to strengthen product offerings and improve product procurement are expected to have benefited its fourth-quarter performance.
The solid execution of Vipshop’s merchandising strategy is likely to have bolstered its total active customer base in the to-be-reported quarter.
Its successful transition to discount retailing has been another major positive. This is anticipated to have continued driving the momentum across repeated customers and helped attract new ones.
VIPS’ quarterly results are expected to reflect its deepening focus on high-margin apparel-related businesses, especially the discount apparel business.
The business is expected to have accelerated Vipshop’s gross merchandise volume (GMV) in the quarter under review.
VIPS’ deep discount channels are expected to have bolstered its online GMV in the to-be-reported quarter.
However, the challenging macroenvironment in China is anticipated to have been a negative.
Also, the impacts of intensifying competition in the online shopping market are anticipated to get reflected in the upcoming results of Vipshop.
What Our Model Says
Our proven model does not conclusively predict an earnings beat for Vipshop 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, as you see below.
Vipshop currently has a Zacks Rank #4 and an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks to Consider
Here are some stocks worth considering, as our model shows that they have the right combination of elements to beat on earnings this season.
The Gap GPS has an Earnings ESP of +24.44% and sports a Zacks Rank #1 at present. You can see the complete list of today's Zacks #1 Rank stocks here.
The Gap is set to announce fourth-quarter 2023 results on Mar 7. The Zacks Consensus Estimate for GPS’ earnings is pinned at 19 cents per share, indicating growth from the year-ago quarter’s loss of 75 cents per share.
Burlington Stores BURL has an Earnings ESP of +1.27% and a Zacks Rank of 3 at present.
Burlington Stores is set to announce fourth-quarter 2023 results on Mar 7. The Zacks Consensus Estimate for BURL’s earnings is pinned at $3.25 per share, indicating growth of 9.8% from the year-ago quarter’s reported figure.
Compugen CGEN has an Earnings ESP of +451.63% and a Zacks Rank #2 at present.
Compugen is scheduled to release fourth-quarter 2023 results on Mar 5. The Zacks Consensus Estimate for CGEN’s earnings is pegged at 10 cents per share, suggesting a jump from the prior-year quarter loss of 4 cents per share.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
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The Gap, Inc. (GPS) : Free Stock Analysis Report
Vipshop Holdings Limited (VIPS) : Free Stock Analysis Report
Compugen Ltd. (CGEN) : Free Stock Analysis Report
Burlington Stores, Inc. (BURL) : Free Stock Analysis Report
