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Pinduoduo (PDD) to Report Q4 Earnings: What's in the Cards?
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Pinduoduo Inc.’s (PDD - Free Report) fourth-quarter 2020 results are likely to reflect strength across its e-commerce business.
For the fourth quarter, the Zacks Consensus Estimate for sales is pegged at $2.93 billion, indicating growth of 88.7% from the prior-year quarter’s reported figure.
Further, the consensus mark for the bottom line stands at a loss per share of 11 cents per share. Notably, the company reported a loss of 20 cents per share in the year-ago quarter.
Pinduoduo surpassed the Zacks Consensus Estimate in three of the trailing four quarters and missed the same once, the average surprise being 18.31%.
Pinduoduo Inc. Sponsored ADR Price and EPS Surprise
The boom in the online retail market, owing to the coronavirus pandemic, is expected to have remained a tailwind for the company in the quarter to be reported. Increasing online shopping is expected to have driven growth in its annual active buyer base in the fourth quarter.
Further, Pinduoduo’s strengthening efforts toward the integration of online traffic with offline retail experiences are likely to get reflected in the to-be-reported quarter’s results.
Furthermore, the company’s live-streaming service, which allows customers to verify products properly with the aid of product demonstrations and answer to the product-related queries and lets merchants share their personal experience and interact with users, is expected to have delivered an enhanced shopping experience.
This, in turn, is likely to have bolstered the customer base of the company in the quarter under review.
Apart from these, the growing traction of Duo Duo Maicai, which offers a complementary experience to customers, is expected to have contributed well.
Further, solid advertising demand from merchants on the company’s platform is anticipated tohave continued benefiting the company’s fourth-quarter performance.
However, the impacts of the uncertainties related to the coronavirus pandemic are likely to get reflected in the company’s fourth-quarter results.
Accelerating costs related to the coronavirus outbreak are anticipated to have negatively impacted the margin expansion of the company in the to-be-reported quarter. Moreover, increasing payment processing fees, higher costs for cloud services and expenses associated with online marketing services are expected to have remained concerning.
What Our Model Says
Our proven model doesn’t 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’s not the case here. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Pinduoduo has an Earnings ESP of 0.00% and a Zacks Rank #4 (Sell).
Stocks to Consider
Here are somestocks worth considering from the same sector as our proven model shows that these have the right combination of elements to beat on earnings this reporting cycle.
Gogo Inc. (GOGO - Free Report) has an Earnings ESP of +10% and a Zacks Rank #3 at present.
Dollar General Corporation (DG - Free Report) has an Earnings ESP of +1.23% and a Zacks Rank #3, presently.
These Stocks Are Poised to Soar Past the Pandemic
The COVID-19 outbreak has shifted consumer behavior dramatically, and a handful of high-tech companies have stepped up to keep America running. Right now, investors in these companies have a shot at serious profits. For example, Zoom jumped 108.5% in less than 4 months while most other stocks were sinking.
Our research shows that 5 cutting-edge stocks could skyrocket from the exponential increase in demand for “stay at home” technologies. This could be one of the biggest buying opportunities of this decade, especially for those who get in early.
Image: Bigstock
Pinduoduo (PDD) to Report Q4 Earnings: What's in the Cards?
Pinduoduo Inc.’s (PDD - Free Report) fourth-quarter 2020 results are likely to reflect strength across its e-commerce business.
For the fourth quarter, the Zacks Consensus Estimate for sales is pegged at $2.93 billion, indicating growth of 88.7% from the prior-year quarter’s reported figure.
Further, the consensus mark for the bottom line stands at a loss per share of 11 cents per share. Notably, the company reported a loss of 20 cents per share in the year-ago quarter.
Pinduoduo surpassed the Zacks Consensus Estimate in three of the trailing four quarters and missed the same once, the average surprise being 18.31%.
Pinduoduo Inc. Sponsored ADR Price and EPS Surprise
Pinduoduo Inc. Sponsored ADR price-eps-surprise | Pinduoduo Inc. Sponsored ADR Quote
Factors to Note
The boom in the online retail market, owing to the coronavirus pandemic, is expected to have remained a tailwind for the company in the quarter to be reported. Increasing online shopping is expected to have driven growth in its annual active buyer base in the fourth quarter.
Further, Pinduoduo’s strengthening efforts toward the integration of online traffic with offline retail experiences are likely to get reflected in the to-be-reported quarter’s results.
Furthermore, the company’s live-streaming service, which allows customers to verify products properly with the aid of product demonstrations and answer to the product-related queries and lets merchants share their personal experience and interact with users, is expected to have delivered an enhanced shopping experience.
This, in turn, is likely to have bolstered the customer base of the company in the quarter under review.
Apart from these, the growing traction of Duo Duo Maicai, which offers a complementary experience to customers, is expected to have contributed well.
Further, solid advertising demand from merchants on the company’s platform is anticipated tohave continued benefiting the company’s fourth-quarter performance.
However, the impacts of the uncertainties related to the coronavirus pandemic are likely to get reflected in the company’s fourth-quarter results.
Accelerating costs related to the coronavirus outbreak are anticipated to have negatively impacted the margin expansion of the company in the to-be-reported quarter. Moreover, increasing payment processing fees, higher costs for cloud services and expenses associated with online marketing services are expected to have remained concerning.
What Our Model Says
Our proven model doesn’t 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’s not the case here. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Pinduoduo has an Earnings ESP of 0.00% and a Zacks Rank #4 (Sell).
Stocks to Consider
Here are somestocks worth considering from the same sector as our proven model shows that these have the right combination of elements to beat on earnings this reporting cycle.
TMobile US, Inc. (TMUS - Free Report) has an Earnings ESP of +7.32% and a Zacks Rank #3, currently. You can see the complete list of today’s Zacks #1 Rank stocks here.
Gogo Inc. (GOGO - Free Report) has an Earnings ESP of +10% and a Zacks Rank #3 at present.
Dollar General Corporation (DG - Free Report) has an Earnings ESP of +1.23% and a Zacks Rank #3, presently.
These Stocks Are Poised to Soar Past the Pandemic
The COVID-19 outbreak has shifted consumer behavior dramatically, and a handful of high-tech companies have stepped up to keep America running. Right now, investors in these companies have a shot at serious profits. For example, Zoom jumped 108.5% in less than 4 months while most other stocks were sinking.
Our research shows that 5 cutting-edge stocks could skyrocket from the exponential increase in demand for “stay at home” technologies. This could be one of the biggest buying opportunities of this decade, especially for those who get in early.
See the 5 high-tech stocks now>>