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What's in the Offing for Alibaba (BABA) in Q3 Earnings?
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Alibaba Group Holding Limited’s (BABA - Free Report) third-quarter fiscal 2022 results are expected to reflect solid momentum across the e-commerce and cloud businesses.
For the fiscal third quarter, the Zacks Consensus Estimate for earnings is pegged at $2.41 per share, indicating a decline of 28.7% from the prior-year quarter’s reported figure.
The consensus mark for the same is pegged at $37.85 billion, which suggests growth of 11.7% from the year-ago quarter’s reported figure.
The company’s earnings surpassed the Zacks Consensus Estimate in two of the trailing four quarters, while missing the same twice, the average surprise being 1.42%.
Alibaba Group Holding Limited Price and EPS Surprise
Alibaba’s strong efforts to add value to consumers and sellers through product enrichment efforts and platform innovations are expected to have driven growth in its e-commerce business in the to-be-reported quarter by driving its customer momentum.
New monetization formats and strengthening online physical goods GMV on China retail marketplaces are expected to have aided customer management revenues of the company in the quarter under review.
The growing momentum across paying members on 1688.com is expected to have been a tailwind for the China commerce wholesale business in the fiscal third quarter.
The infusion of advanced technologies along with increasing validation for Taobao and Tmall portals is expected to have been beneficial in the quarter to be reported. The application of Big Data and AI into the company’s e-commerce platform is anticipated to have continued helping it deliver enhanced customer experience.
Well-performing Lazada and Trendyol are likely to have aided the performance of Alibaba’s International commerce retail business in the quarter under review.
A solid momentum across members on the alibaba.com platform coupled with robust cross-border-related value-added services is expected to have contributed well to the International commerce wholesale business’s growth in the fiscal third quarter.
In addition to the e-commerce business strength, the company’s growing cloud segment is expected to have contributed well to the fiscal third-quarter performance of Alibaba.
However, we note that the company has been spending heavily in new areas of the core online retail business, including supermarkets, stores, new artificial intelligence, digital entertainment and cloud computing businesses. The impacts of the increased expenses are expected to get reflected in Alibaba’s fiscal third-quarter results.
The company’s increasing regulatory concerns are anticipated to have been major headwinds in the to-be-reported quarter.
What Our Model Says
Our proven model doesn’t conclusively predict an earnings beat for Alibaba 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.
Alibaba has an Earnings ESP of 0.00% and a Zacks Rank #5 (Strong Sell), currently.
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.
Endava is scheduled to release second-quarter fiscal 2022 results on Feb 16. The Zacks Consensus Estimate for DAVA’s earnings is pegged at 59 cents per share, suggesting an increase of 55.3% from the prior-year reported figure.
Monolithic Power Systems (MPWR - Free Report) has an Earnings ESP of +2.83% and a Zacks Rank #2 at present.
Monolithic Power Systems is set to report fourth-quarter 2021 results on Feb 10. The Zacks Consensus Estimate for MPWR’s earnings is pegged at $1.87 per share, which suggests an increase of 42.8% from the prior-year reported figure.
Analog Devices (ADI - Free Report) has an Earnings ESP of +0.25% and a Zacks Rank #2 at present.
Analog Devices is scheduled to release first-quarter fiscal 2022 results on Feb 16. The Zacks Consensus Estimate for ADI’s earnings is pegged at $1.79 per share, which suggests an increase of 24.3% from the prior-year reported figure.
Image: Bigstock
What's in the Offing for Alibaba (BABA) in Q3 Earnings?
Alibaba Group Holding Limited’s (BABA - Free Report) third-quarter fiscal 2022 results are expected to reflect solid momentum across the e-commerce and cloud businesses.
For the fiscal third quarter, the Zacks Consensus Estimate for earnings is pegged at $2.41 per share, indicating a decline of 28.7% from the prior-year quarter’s reported figure.
The consensus mark for the same is pegged at $37.85 billion, which suggests growth of 11.7% from the year-ago quarter’s reported figure.
The company’s earnings surpassed the Zacks Consensus Estimate in two of the trailing four quarters, while missing the same twice, the average surprise being 1.42%.
Alibaba Group Holding Limited Price and EPS Surprise
Alibaba Group Holding Limited price-eps-surprise | Alibaba Group Holding Limited Quote
Factors to Consider
Alibaba’s strong efforts to add value to consumers and sellers through product enrichment efforts and platform innovations are expected to have driven growth in its e-commerce business in the to-be-reported quarter by driving its customer momentum.
New monetization formats and strengthening online physical goods GMV on China retail marketplaces are expected to have aided customer management revenues of the company in the quarter under review.
The growing momentum across paying members on 1688.com is expected to have been a tailwind for the China commerce wholesale business in the fiscal third quarter.
The infusion of advanced technologies along with increasing validation for Taobao and Tmall portals is expected to have been beneficial in the quarter to be reported. The application of Big Data and AI into the company’s e-commerce platform is anticipated to have continued helping it deliver enhanced customer experience.
Well-performing Lazada and Trendyol are likely to have aided the performance of Alibaba’s International commerce retail business in the quarter under review.
A solid momentum across members on the alibaba.com platform coupled with robust cross-border-related value-added services is expected to have contributed well to the International commerce wholesale business’s growth in the fiscal third quarter.
In addition to the e-commerce business strength, the company’s growing cloud segment is expected to have contributed well to the fiscal third-quarter performance of Alibaba.
However, we note that the company has been spending heavily in new areas of the core online retail business, including supermarkets, stores, new artificial intelligence, digital entertainment and cloud computing businesses. The impacts of the increased expenses are expected to get reflected in Alibaba’s fiscal third-quarter results.
The company’s increasing regulatory concerns are anticipated to have been major headwinds in the to-be-reported quarter.
What Our Model Says
Our proven model doesn’t conclusively predict an earnings beat for Alibaba 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.
Alibaba has an Earnings ESP of 0.00% and a Zacks Rank #5 (Strong Sell), currently.
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.
Endava (DAVA - Free Report) has an Earnings ESP of +0.85% and a Zacks Rank of 2 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Endava is scheduled to release second-quarter fiscal 2022 results on Feb 16. The Zacks Consensus Estimate for DAVA’s earnings is pegged at 59 cents per share, suggesting an increase of 55.3% from the prior-year reported figure.
Monolithic Power Systems (MPWR - Free Report) has an Earnings ESP of +2.83% and a Zacks Rank #2 at present.
Monolithic Power Systems is set to report fourth-quarter 2021 results on Feb 10. The Zacks Consensus Estimate for MPWR’s earnings is pegged at $1.87 per share, which suggests an increase of 42.8% from the prior-year reported figure.
Analog Devices (ADI - Free Report) has an Earnings ESP of +0.25% and a Zacks Rank #2 at present.
Analog Devices is scheduled to release first-quarter fiscal 2022 results on Feb 16. The Zacks Consensus Estimate for ADI’s earnings is pegged at $1.79 per share, which suggests an increase of 24.3% from the prior-year reported figure.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.