Vipshop (VIPS) to Report Q3 Earnings: What's in the Cards?
Vipshop Holdings Limited VIPS is set to report its third-quarter 2023 results on Nov 14.
VIPS expects third-quarter total net revenues between RMB 21.6 billion and RMB 22.7 billion, indicating growth of 0-5% from the prior-year quarter’s reported figure.
The Zacks Consensus Estimate for revenues is pegged at $3.08 billion, suggesting growth of 1.4% from the year-ago reported figure.
The consensus mark for earnings per share is pegged at 40 cents per share, indicating growth of 11.1% from the prior-year reported figure.
Vipshop’s earnings surpassed the Zacks Consensus Estimate in all the trailing four quarters, the average earnings surprise being 24.6%.
Vipshop Holdings Limited Price and EPS Surprise
Vipshop Holdings Limited price-eps-surprise | Vipshop Holdings Limited Quote
Key Factors at Play
Solid momentum across Vipshop’s merchandising capabilities is likely to have bolstered its total active customer base in the to-be-reported quarter.
Further, the company’s business process optimization and supply-chain capabilities are expected to have benefited its quarterly performance.
Also, Vipshop’s strong momentum across discount retailing is anticipated to have aided the upcoming results.
The company’s growing efficiency in personalized recommendations, owing to its strong customer and product insights, is likely to have benefited its third-quarter performance.
Additionally, the company’s App upgrades to increase customer engagement and efficiency across different channels are expected to be reflected in the to-be-reported results.
These factors are expected to have accelerated Vipshop’s gross merchandise volume in the quarter under review.
However, macroeconomic uncertainties and intensifying competition in the online shopping market are likely to have posed challenges to the company in the quarter-to-be-reported.
Further, the slow season for apparel and lower ticket size for summer apparel are likely to have negatively affected Vipshop’s upcoming results.
What Our Model Says
Per the Zacks model, 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.
Vipshop has an Earnings ESP of 0.00% and a Zacks Rank #4 (Sell). You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks to Consider
Here are a few stocks worth considering, as our model shows that these have the right combination of elements to beat on earnings in their upcoming release:
Anterix ATEX has an Earnings ESP of +12.57% and a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
Anterix is set to announce its second-quarter fiscal 2024 results on Nov 13. ATEX shares have lost 6.4% year to date.
Synopsys SNPS has an Earnings ESP of +0.94% and a Zacks Rank #2.
Synopsys is set to announce its fourth-quarter fiscal 2023 results on Nov 29. SNPS shares have gained 58.6% year to date.
Snowflake SNOW has an Earnings ESP of +15.71% and a Zacks Rank #2.
Snowflake is set to announce its third-quarter fiscal 2024 results on Nov 29. SNOW shares have gained 10.8% year to date.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
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Vipshop Holdings Limited (VIPS) : Free Stock Analysis Report
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