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Pinduoduo (PDD) to Report Q2 Earnings: What's in Store?

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Pinduoduo Inc. (PDD - Free Report) is scheduled to report second-quarter 2021 results on Aug 24.

For the second quarter, the Zacks Consensus Estimate for sales is pegged at $4.2 billion, suggesting a surge of 143.1% from the year-ago reported figure.

Further, the consensus mark for the bottom line stands at a loss per share of 15 cents. It incurred a loss of 11 cents per share in the year-ago quarter.

The company surpassed the Zacks Consensus Estimate in three of the trailing four quarters and missed the same once, with the average surprise being 30.7%.

Factors to Consider

Strength in the e-commerce business owing to growth in both online sale of physical goods and parcel shipment volume is likely to have continued aiding Pinduoduo in the second quarter.

Increasing user activity on the company’s platform owing to growing active buyers might have benefited its to-be-reported quarter’s performance. Also, rising investments in user engagement and mindshare are expected to have remained tailwinds.

Growing efforts to strengthen agriculture and grocery businesses are expected to have contributed well to the top line in the quarter under discussion.

Rising demand in agriculture-focused logistics infrastructure system Duo Duo grocery, which helps consumers in purchasing greater variety of perishables directly from farmers and agri-merchants, is anticipated to have benefited the quarterly performance.

Deepening focus on technological advancements in agriculture, logistics systems and infrastructure is likely to get reflected in the upcoming quarterly results.

Further, partnerships with local communities, shops, farmers and agri-merchants are expected to have aided its performance in the quarter under review.

Also, strength across the mobile-only and discovery-oriented platform as well as team purchase model might have remained positives.

Yet, increasing expenditure in online and offline advertisement as well as promotion might have affected the quarterly performance.

Further, coronavirus pandemic-related uncertainties are expected to have remained concerns.

What Our Model Says

Our proven model does not 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. 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 -100.00% 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.

Abercrombie & Fitch Company (ANF - Free Report) has an Earnings ESP of +6.14% and a Zacks Rank of 1, at present.

Burlington Stores (BURL - Free Report) has an Earnings ESP of +15.26% and a Zacks Rank of 1, at present.

DICKS Sporting Goods (DKS - Free Report) has an Earnings ESP of +1.66% and a Zacks Rank of 2, at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

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