Back to top

Image: Bigstock

Coupang (CPNG) to Report Q2 Earnings: What's in the Cards?

Read MoreHide Full Article

Coupang, Inc. (CPNG - Free Report) is scheduled to report second-quarter 2021 results on Aug 11.

For the second quarter, the Zacks Consensus Estimate for revenues is pegged at $4.54 billion.

Further, the Zacks Consensus Estimate for the bottom line is pegged at a loss of 13 cents per share, which has been unchanged for the past 30 days.

Factors to Consider

Coupang’s dominant position in the e-commerce market of South Korea is expected to get reflected in the upcoming second-quarter results.

Investments in technology, end-to-end integration, dynamic logistics network and scale economies are likely to have aided the top line in the quarter under discussion.

Coupang, Inc. Price and EPS Surprise

Coupang, Inc. Price and EPS Surprise

Coupang, Inc. price-eps-surprise | Coupang, Inc. Quote

Further, increased online shopping trend owing to the coronavirus pandemic might have continued to be a major tailwind in the second quarter.

Rising social distancing norms amid the pandemic has been driving door-to-door delivery of essential and other items. This is likely to have propelled the company’s e-commerce growth in the quarter under review.

Growing momentum across the company’s Rocket Delivery including dawn and same-day delivery might have remained a positive. Additionally, strength in the company’s streaming video offering, Coupang play, is likely to have been another positive.

These factors are expected to have driven growth in Coupang’s Rocket WOW member base during the soon-to-be-reported quarter.

The company’s growing offerings in consumer electronics, food and grocery, financial services, private-label brands, apparel, and travel at affordable pricing are anticipated to have continued proliferating customer momentum during the quarter.

However, increasing operating, general and administrative expenses might have affected the upcoming quarterly results.

Further, growing competition in the e-commerce market is likely to have remained a headwind.

What Our Model Says

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

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

Advance Auto Parts (AAP - Free Report) has an Earnings ESP of +25.92% and a Zacks Rank of 2, at present.

Americas CarMart (CRMT - Free Report) has an Earnings ESP of +5.63% and a Zacks Rank of 1, at present.

Brinker International (EAT - Free Report) has an Earnings ESP of +8.54% and a Zacks Rank of 2, at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Published in