Back to top

Image: Bigstock

JD.com (JD) to Report Q1 Earnings: What's in the Cards?

Read MoreHide Full Article

JD.com, Inc. (JD - Free Report) is scheduled to report first-quarter 2021 results on May 19.

For the first quarter, the Zacks Consensus Estimate for revenues is pegged at $29.9 billion, indicating an improvement of 44.9% from the year-ago reported figure.

Further, the consensus mark for earnings is pegged at 39 cents per share, indicating a 39.3% rise from the previous-year reported figure.

Notably, the company delivered an earnings surprise of 4.6% in the last reported quarter.

JD.com, Inc. Price and EPS Surprise

JD.com, Inc. Price and EPS Surprise

JD.com, Inc. price-eps-surprise | JD.com, Inc. Quote

Key Factors to Note

The company’s JD Retail segment, comprising the e-commerce business, is expected to have been the key catalyst in the first quarter.    

The launch of flagship stores of popular fashion and luxury brands like John Lobb, Stefano Ricci, Vivienne Westwoodon and Anya Hindmarch, among others, on JD.com is likely to have driven customer momentum, which in turn is expected to have aided the performance of JD Retail during the quarter-to-be-reported.

JD retail’s omni-channel initiatives are anticipated to have contributed well to top-line growth of the segment in the first quarter.

Moreover, the company’s collaboration with Italian luxury brands Prada and MiuMiu, which bolstered its omni-channel efforts, might have been a positive.

Furthermore, growing momentum of JD health that offers free online medical consultation and online pharmacy retail services is likely to get reflected in the company’s to-be-reported quarter’s results.

Growing investments in research and development are also likely to have been encouraging for the company in the quarter under review.

Additionally, the new businesses segment comprising technology, supply chain and logistics services is expected to have helped it in gaining traction across lower-tier cities in the first quarter.

Moreover, the well-performing Jingxi Business Group is expected to have aided JD.com’s performance in the lower-tier cities.

However, increasing fulfilment, marketing, and research and development expenses are likely to have been major risks to the company’s profitability in the quarter under review.

Moreover, increasing competitive pressure from Alibaba in the e-commerce market might be reflected in first-quarter results.

What Our Model Says

Our proven model does not conclusively predict an earnings beat for JD.com 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.

JD.com has an Earnings ESP of -14.83% and a Zacks Rank #5 (Strong Sell), at present.

Stocks to Consider

Here are some stocks that you may consider as our model shows that these have the right combination of elements to beat on earnings this season.

Digital Turbine (APPS - Free Report) has an Earnings ESP of +6.98% and a Zacks Rank of 1, at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Pure Storage (PSTG - Free Report) has an Earnings ESP of +10.81% and a Zacks Rank of 2, at present.

NVIDIA (NVDA - Free Report) has an Earnings ESP of +2.51% and a Zacks Rank #2.

Zacks Top 10 Stocks for 2021

In addition to the stocks discussed above, would you like to know about our 10 best buy-and-hold tickers for the entirety of 2021?

Last year's 2020 Zacks Top 10 Stocks portfolio returned gains as high as +386.8%. Now a brand-new portfolio has been handpicked from over 4,000 companies covered by the Zacks Rank. Don’t miss your chance to get in on these long-term buys.

AccessZacks Top 10 Stocks for 2021 today >>

Published in