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What You Need to Know Ahead of Alibaba's (BABA) Q4 Earnings
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Alibaba Group Holding Limited (BABA - Free Report) is scheduled to report fourth-quarter fiscal 2024 results on May 14.
For the fiscal fourth quarter, the Zacks Consensus Estimate for revenues is pegged at $30.59 billion, suggesting a 1% rise from the year-ago quarter’s reported figure.
The Zacks Consensus Estimate for earnings is pinned at $1.24 per share, indicating a fall of 20.5% from the prior-year quarter’s reported figure. The figure has moved 3.4% north over the past 30 days.
Earnings surpassed the Zacks Consensus Estimate in three of the trailing four quarters while missing the same once, the average surprise being 10.3%.
Alibaba Group Holding Limited Price and EPS Surprise
Alibaba’s China commerce retail business is expected to have been impacted by macroeconomic headwinds prevailing in China.
Sluggish consumer discretionary spending is likely to have been another negative for the business in the quarter under review.
These factors are expected to have hurt the performance of the Taobao and Tmall Group in the fiscal fourth quarter.
Rising expenses related to new initiatives are likely to have been concerning for the company. The impacts of the sluggish Sun Art business, and stiff competition from domestic and foreign e-commerce companies are expected to get reflected in the upcoming results.
Nevertheless, the growing momentum across the International commerce business is expected to have aided the company’s fiscal fourth-quarter performance.
Robust Trendyol e-commerce business is likely to have contributed well to the performance of the International commerce retail division in the quarter under review. Strength across Lazada and AliExpress is likely to have been another positive.
Growing momentum across cross-border-related value-added services is expected to have aided growth in Alibaba’s International commerce wholesale business.
Solid momentum across the company’s Local Services Group, owing to strength in Ele.me and Amap businesses, is anticipated to have been a positive.
Also, strength in the Cainiao logistics business and the cloud division is expected to have driven top-line growth in the quarter under review.
Alibaba’s strong cloud services portfolio, powered by advanced technologies like AI, generative AI, Machine Learning and the Internet of Things, is expected to have aided it in addressing the rising demand for cloud architecture.
What Our Model Says
Our proven model does not conclusively predict an earnings beat for Alibaba 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 elaborated below.
BABA currently has a Zacks Rank #5 (Strong Sell) and an Earnings ESP of +4.96%. 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 indicates they have the right combination of elements to beat on earnings this season.
NVIDIA is scheduled to release first-quarter fiscal 2025 results on May 22. The Zacks Consensus Estimate for NVDA’s earnings is pegged at $5.49 per share, suggesting a significant jump from the prior-year quarter’s reported figure of $1.09 per share.
Abercrombie & Fitch (ANF - Free Report) has an Earnings ESP of +5.10% and a Zacks Rank #2 at present.
Abercrombie & Fitch is set to report first-quarter 2024 results on May 29. The Zacks Consensus Estimate for ANF’s earnings is pegged at $1.54 per share, indicating a significant jump from the year-ago quarter’s reported figure of 39 cents.
Costco Wholesale (COST - Free Report) has an Earnings ESP of +0.07% and a Zacks Rank #3 at present.
Costco Wholesale is set to report its third-quarter fiscal 2024 results on May 30. The Zacks Consensus Estimate for COST’s earnings is pegged at $3.69 per share, suggesting 7.6% growth from the prior-year quarter’s reported figure.
Image: Bigstock
What You Need to Know Ahead of Alibaba's (BABA) Q4 Earnings
Alibaba Group Holding Limited (BABA - Free Report) is scheduled to report fourth-quarter fiscal 2024 results on May 14.
For the fiscal fourth quarter, the Zacks Consensus Estimate for revenues is pegged at $30.59 billion, suggesting a 1% rise from the year-ago quarter’s reported figure.
The Zacks Consensus Estimate for earnings is pinned at $1.24 per share, indicating a fall of 20.5% from the prior-year quarter’s reported figure. The figure has moved 3.4% north over the past 30 days.
Earnings surpassed the Zacks Consensus Estimate in three of the trailing four quarters while missing the same once, the average surprise being 10.3%.
Alibaba Group Holding Limited Price and EPS Surprise
Alibaba Group Holding Limited price-eps-surprise | Alibaba Group Holding Limited Quote
Factors to Consider
Alibaba’s China commerce retail business is expected to have been impacted by macroeconomic headwinds prevailing in China.
Sluggish consumer discretionary spending is likely to have been another negative for the business in the quarter under review.
These factors are expected to have hurt the performance of the Taobao and Tmall Group in the fiscal fourth quarter.
Rising expenses related to new initiatives are likely to have been concerning for the company. The impacts of the sluggish Sun Art business, and stiff competition from domestic and foreign e-commerce companies are expected to get reflected in the upcoming results.
Nevertheless, the growing momentum across the International commerce business is expected to have aided the company’s fiscal fourth-quarter performance.
Robust Trendyol e-commerce business is likely to have contributed well to the performance of the International commerce retail division in the quarter under review. Strength across Lazada and AliExpress is likely to have been another positive.
Growing momentum across cross-border-related value-added services is expected to have aided growth in Alibaba’s International commerce wholesale business.
Solid momentum across the company’s Local Services Group, owing to strength in Ele.me and Amap businesses, is anticipated to have been a positive.
Also, strength in the Cainiao logistics business and the cloud division is expected to have driven top-line growth in the quarter under review.
Alibaba’s strong cloud services portfolio, powered by advanced technologies like AI, generative AI, Machine Learning and the Internet of Things, is expected to have aided it in addressing the rising demand for cloud architecture.
What Our Model Says
Our proven model does not conclusively predict an earnings beat for Alibaba 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 elaborated below.
BABA currently has a Zacks Rank #5 (Strong Sell) and an Earnings ESP of +4.96%. 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 indicates they have the right combination of elements to beat on earnings this season.
NVIDIA (NVDA - Free Report) has an Earnings ESP of +2.50% and sports a Zacks Rank #1 at present. You can see the complete list of today's Zacks #1 Rank stocks here.
NVIDIA is scheduled to release first-quarter fiscal 2025 results on May 22. The Zacks Consensus Estimate for NVDA’s earnings is pegged at $5.49 per share, suggesting a significant jump from the prior-year quarter’s reported figure of $1.09 per share.
Abercrombie & Fitch (ANF - Free Report) has an Earnings ESP of +5.10% and a Zacks Rank #2 at present.
Abercrombie & Fitch is set to report first-quarter 2024 results on May 29. The Zacks Consensus Estimate for ANF’s earnings is pegged at $1.54 per share, indicating a significant jump from the year-ago quarter’s reported figure of 39 cents.
Costco Wholesale (COST - Free Report) has an Earnings ESP of +0.07% and a Zacks Rank #3 at present.
Costco Wholesale is set to report its third-quarter fiscal 2024 results on May 30. The Zacks Consensus Estimate for COST’s earnings is pegged at $3.69 per share, suggesting 7.6% growth from the prior-year quarter’s reported figure.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.