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Vipshop (VIPS) to Report Q1 Earnings: What's in the Offing?
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Vipshop Holdings Limited (VIPS - Free Report) is set to report first-quarter 2021 results on May 19.
For the first quarter, it expects total net revenues between RMB 27.2 billion and RMB 28.2 billion, indicating growth of 45-50% from the prior-year quarter’s reported figure.
The Zacks Consensus Estimate for revenues is pegged at $4.28 billion, suggesting a surge of 61.4% from the year-ago reported figure.
Further, the consensus mark for earnings per share is pegged at 37 cents per share, which indicates year-over-year growth of 85%.
Notably, the company surpassed the Zacks Consensus Estimate in three of the trailing four quarters and missed the same once, delivering an earnings surprise of 37.13%, on average.
The company’s persistent efforts toward strengthening product offerings and improving product procurement are expected to have benefited first-quarter performance, given the growing proliferation of online shopping amid the pandemic.
Further, solid execution of Vipshop’s merchandising strategy is likely to have bolstered its total active customer base in the to-be-reported quarter.
Moreover, its successful transition to discount retailing remains a major positive. This is anticipated to have continued to drive the momentum across repeated customers and helped in attracting new ones.
Additionally, the company’s quarterly results are expected to reflect its deepening focus on high-margin-generating apparel-related businesses, especially the discount apparel business.
Moreover, the business is expectedto have accelerated the company’s gross merchandise volume (GMV) in the quarter under review. Furthermore, Vipshop’s deep discount channels are expected to have bolstered its on line GMV in the to-be-reported quarter.
Further, the company’s Shan Shan Outlets —which operates five outlets in Ningbo, Taiyuan, Harbin, Zhengzhou and Nanchang — is expected to have continued driving its GMV growth in the firstquarter.
However, intensifying competition in the online shopping market, which has resulted in a hike in its salesand marketing spending, is anticipated to get reflected in the company’s first-quarter results.
What Our Model Says
Our proven model doesn’t conclusively predict an earnings beat for Vipshopthis 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.
Vipshop has an Earnings ESP of -6.85% and a Zacks Rank #3.
Stocks to Consider
Here are some stocks to consider as our model shows that these have the right combination of elements to beat on earnings this season.
Pure Storage (PSTG - Free Report) currently has an Earnings ESP of +10.81% and a Zacks Rank of 3.
NVIDIA (NVDA - Free Report) has an Earnings ESP of +1.96% and a Zacks Rank #2 at present.
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The only question is “Will you get into the right stocks early when their growth potential is greatest?”
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Vipshop (VIPS) to Report Q1 Earnings: What's in the Offing?
Vipshop Holdings Limited (VIPS - Free Report) is set to report first-quarter 2021 results on May 19.
For the first quarter, it expects total net revenues between RMB 27.2 billion and RMB 28.2 billion, indicating growth of 45-50% from the prior-year quarter’s reported figure.
The Zacks Consensus Estimate for revenues is pegged at $4.28 billion, suggesting a surge of 61.4% from the year-ago reported figure.
Further, the consensus mark for earnings per share is pegged at 37 cents per share, which indicates year-over-year growth of 85%.
Notably, the company surpassed the Zacks Consensus Estimate in three of the trailing four quarters and missed the same once, delivering an earnings surprise of 37.13%, on average.
Vipshop Holdings Limited Price and EPS Surprise
Vipshop Holdings Limited price-eps-surprise | Vipshop Holdings Limited Quote
Key Factors at Play
The company’s persistent efforts toward strengthening product offerings and improving product procurement are expected to have benefited first-quarter performance, given the growing proliferation of online shopping amid the pandemic.
Further, solid execution of Vipshop’s merchandising strategy is likely to have bolstered its total active customer base in the to-be-reported quarter.
Moreover, its successful transition to discount retailing remains a major positive. This is anticipated to have continued to drive the momentum across repeated customers and helped in attracting new ones.
Additionally, the company’s quarterly results are expected to reflect its deepening focus on high-margin-generating apparel-related businesses, especially the discount apparel business.
Moreover, the business is expectedto have accelerated the company’s gross merchandise volume (GMV) in the quarter under review. Furthermore, Vipshop’s deep discount channels are expected to have bolstered its on line GMV in the to-be-reported quarter.
Further, the company’s Shan Shan Outlets —which operates five outlets in Ningbo, Taiyuan, Harbin, Zhengzhou and Nanchang — is expected to have continued driving its GMV growth in the firstquarter.
However, intensifying competition in the online shopping market, which has resulted in a hike in its salesand marketing spending, is anticipated to get reflected in the company’s first-quarter results.
What Our Model Says
Our proven model doesn’t conclusively predict an earnings beat for Vipshopthis 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.
Vipshop has an Earnings ESP of -6.85% and a Zacks Rank #3.
Stocks to Consider
Here are some stocks to 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 it sports 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) currently has an Earnings ESP of +10.81% and a Zacks Rank of 3.
NVIDIA (NVDA - Free Report) has an Earnings ESP of +1.96% and a Zacks Rank #2 at present.
Infrastructure Stock Boom to Sweep America
A massive push to rebuild the crumbling U.S. infrastructure will soon be underway. It’s bipartisan, urgent, and inevitable. Trillions will be spent. Fortunes will be made.
The only question is “Will you get into the right stocks early when their growth potential is greatest?”
Zacks has released a Special Report to help you do just that, and today it’s free. Discover 7 special companies that look to gain the most from construction and repair to roads, bridges, and buildings, plus cargo hauling and energy transformation on an almost unimaginable scale.
Download FREE: How to Profit from Trillions on Spending for Infrastructure >>