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Pinduoduo (PDD) to Report Q1 Earnings: What's in Store?
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Pinduoduo Inc. (PDD - Free Report) is scheduled to report first-quarter 2021 results on May 26.
For the first quarter, the Zacks Consensus Estimate for sales is pegged at $3.15 billion, indicating a jump from $923.8 million reported in the prior-year quarter.
Further, the consensus mark for the bottom line stands at a loss per share of 68 cents, whereas it reported a loss of 50 cents per share in the year-ago quarter.
The company surpassed the Zacks Consensus Estimate in two of the trailing four quarters and missed the same in the other two, the average surprise being 7.18%.
Pinduoduo Inc. Sponsored ADR Price and EPS Surprise
The company’s strength across the e-commerce business is likely to have contributed significantly to the first-quarter performance.
Further, strong momentum across its online marketing services and growing merchandise sales are expected to have continued driving top-line growth in the quarter under review.
Apart from this, the company’s live streaming service, which remains an important tool as it helps merchants to share their personal experiences and interact with users, is expected to have helped it in attracting shoppers to its platform.
Moreover, the service helps customers to verify products properly with the aid of product demonstrations and answers to product-related queries of merchants.
This, in turn, is anticipated to have aided the company in delivering an enhanced shopping experience. This is expected to have driven customer momentum in the to-be-reported quarter.
Further, Pinduoduo’s strengthening efforts toward the integration of online traffic with offline retail experiences are likely to get reflected inthe first-quarter results.
However, 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.
Further, a reduction in the advertising fees, increasing payment processing fees, higher costs for cloud services and expenses associated with online marketing services are expected to have been 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 #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.
American Eagle Outfitters (AEO - Free Report) currently has an Earnings ESP of +6.14% and a Zacks Rank of 2.
NVIDIA (NVDA - Free Report) has an Earnings ESP of +1.94% and a Zacks Rank #2 at present.
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Blockchain and cryptocurrency have sparked one of the most exciting discussion topics of a generation. Some call it the “Internet of Money” and predict it could change the way money works forever. If true, it could do to banks what Netflix did to Blockbuster and Amazon did to Sears. Experts agree we’re still in the early stages of this technology, and as it grows, it will create several investing opportunities.
Zacks has just revealed 3 companies that can help investors capitalize on the explosive profit potential of Bitcoin and the other cryptocurrencies with significantly less volatility than buying them directly.
Image: Bigstock
Pinduoduo (PDD) to Report Q1 Earnings: What's in Store?
Pinduoduo Inc. (PDD - Free Report) is scheduled to report first-quarter 2021 results on May 26.
For the first quarter, the Zacks Consensus Estimate for sales is pegged at $3.15 billion, indicating a jump from $923.8 million reported in the prior-year quarter.
Further, the consensus mark for the bottom line stands at a loss per share of 68 cents, whereas it reported a loss of 50 cents per share in the year-ago quarter.
The company surpassed the Zacks Consensus Estimate in two of the trailing four quarters and missed the same in the other two, the average surprise being 7.18%.
Pinduoduo Inc. Sponsored ADR Price and EPS Surprise
Pinduoduo Inc. Sponsored ADR price-eps-surprise | Pinduoduo Inc. Sponsored ADR Quote
Factors to Note
The company’s strength across the e-commerce business is likely to have contributed significantly to the first-quarter performance.
Further, strong momentum across its online marketing services and growing merchandise sales are expected to have continued driving top-line growth in the quarter under review.
Apart from this, the company’s live streaming service, which remains an important tool as it helps merchants to share their personal experiences and interact with users, is expected to have helped it in attracting shoppers to its platform.
Moreover, the service helps customers to verify products properly with the aid of product demonstrations and answers to product-related queries of merchants.
This, in turn, is anticipated to have aided the company in delivering an enhanced shopping experience. This is expected to have driven customer momentum in the to-be-reported quarter.
Further, Pinduoduo’s strengthening efforts toward the integration of online traffic with offline retail experiences are likely to get reflected inthe first-quarter results.
However, 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.
Further, a reduction in the advertising fees, increasing payment processing fees, higher costs for cloud services and expenses associated with online marketing services are expected to have been 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 #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 carries a Zacks Rank of 2 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
American Eagle Outfitters (AEO - Free Report) currently has an Earnings ESP of +6.14% and a Zacks Rank of 2.
NVIDIA (NVDA - Free Report) has an Earnings ESP of +1.94% and a Zacks Rank #2 at present.
Bitcoin, Like the Internet Itself, Could Change Everything
Blockchain and cryptocurrency have sparked one of the most exciting discussion topics of a generation. Some call it the “Internet of Money” and predict it could change the way money works forever. If true, it could do to banks what Netflix did to Blockbuster and Amazon did to Sears. Experts agree we’re still in the early stages of this technology, and as it grows, it will create several investing opportunities.
Zacks has just revealed 3 companies that can help investors capitalize on the explosive profit potential of Bitcoin and the other cryptocurrencies with significantly less volatility than buying them directly.
See 3 crypto-related stocks now >>