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What's in Store for Jumia Technologies' (JMIA) Q4 Earnings?

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Jumia Technologies AG (JMIA - Free Report) is scheduled to report fourth-quarter 2020 results on Feb 24.

For the fourth quarter, the Zacks Consensus Estimate for sales is pegged at $49.5 million.

Further, the Zacks Consensus Estimate for the bottom line for the fourth quarter has remained steady over the past 30 days at a loss of 46 cents per share.

JUMIA TECHADR Price and EPS Surprise

JUMIA TECHADR Price and EPS Surprise

JUMIA TECHADR price-eps-surprise | JUMIA TECHADR Quote

Factors to Note

The boom in the e-commerce space led by the coronavirus pandemic is expected to have acted as a tailwind in the fourth quarter.

Also, resurgence in important markets like South Africa and Nigeria is expected to have positively contributed to its quarterly performance.

Moreover, unprecedented demand from brands and sellers is expected to have benefited the company’s to-be-reported quarter’s performance.

Further, solid traction across the FMCG category is likely to have aided volume generation of Jumia Technologies in the quarter under review.

Additionally, partnerships with household care and FMCG brands such as Nestle, Coca Cola, Reckitt Benckiser, Unilever, and P&G may have contributed to its to-be-reported quarter’s performance.

Growing momentum across contactless delivery is expected to have benefited the promotion of JumiaPay, which in turn might have driven the company’s transaction volume in the fourth quarter.

Moreover, its strengthening monetization efforts are likely to have contributed to marketplace revenues in the to-be-reported quarter.

The introduction of stay entertained with Jumia series combined with music streaming services is expected to have benefited the company in the quarter to be reported.

Further, growing momentum of Jumia Food across grocery and convenience retailers on the back of its on-demand platform and logistics infrastructure might get reflected in fourth-quarter results.

However, short-term supply and logistics challenges owing to social distancing induced by the COVID-19 outbreak may have weighed on the to-be-reported quarterly performance.

What Our Model Says

Our proven model does not conclusively predict an earnings beat for Jumia Technologies 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. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Jumia has an Earnings ESP of 0.00% and a Zacks Rank #3.

Stocks to Consider

Here are some stocks you may consider, as our proven model shows that these have the right combination of elements to post an earnings beat in the to-be-reported quarter.

TopBuild Corp. (BLD - Free Report) has an Earnings ESP of +6.66% and carries a Zacks Rank of 2, at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Vipshop Holdings Limited (VIPS - Free Report) has an Earnings ESP of +6.25% and carries a Zacks Rank of 3, currently.

Etsy, Inc. (ETSY - Free Report) has an Earnings ESP of +0.75% and currently carries a Zacks Rank of 3.

5 Stocks Set to Double

Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2020. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth.

Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.

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