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Alibaba (BABA) to Report Q4 Earnings: What's in the Cards?
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Alibaba Group Holding Limited’s (BABA - Free Report) fourth-quarter fiscal 2022 results are expected to reflect solid momentum across the e-commerce and cloud businesses.
For the fiscal fourth quarter, the Zacks Consensus Estimate for revenues is pegged at $30.8 billion, which suggests growth of 7.6% from the year-ago quarter’s reported figure.
The Zacks Consensus Estimate for earnings is pegged at $1.06 per share, indicating a decline of 32.9% from the prior-year quarter’s reported figure. Notably, the figure moved 6% north over the past 30 days.
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 1.74%.
Alibaba Group Holding Limited Price and EPS Surprise
Alibaba's strong efforts to add value to consumers and sellers through the consumer segment, product enrichment 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.
The infusion of advanced technologies such as Big Data and AI into BABA's e-commerce platform is anticipated to have continued helping it deliver enhanced customer experience.
Apart from this, benefits from the Sun Art consolidation, along with a spike in the average unit price per click and solid contributions from new monetization formats, are expected to have driven growth in the China commerce retail revenues in the quarter under review.
Well-performing Lazada and AliExpress are likely to have aided the performance of Alibaba's International commerce retail business in the fiscal fourth quarter.
The increasing number of paying members on the alibaba.com platform, coupled with solid momentum across cross-border-related value-added services, is expected to have contributed well to the International commerce wholesale business's growth.
Apart from e-commerce, the company's robust cloud segment is expected to have sustained its momentum in the fiscal fourth quarter on a growing number of paying customers.
However, slowing demand from customers in the online entertainment and education fields is anticipated to have been a negative for the cloud business of Alibaba in the quarter to be reported.
Softness in online physical goods GMV on the Taobao and Tmall marketplaces is expected to have acted as a headwind. Sluggishness in Trendyol is likely to have impacted the quarterly performance.
Uncertainties associated with the ongoing pandemic are anticipated to have been concerning in the quarter under review.
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 #3, 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.
Analog Devices is scheduled to release second-quarter fiscal 2022 results on May 18. The Zacks Consensus Estimate for ADI’s earnings is pegged at $2.12 per share, suggesting an increase of 37.7% from the prior-year quarter’s reported figure.
Cisco Systems (CSCO - Free Report) has an Earnings ESP of +0.84% and a Zacks Rank #2 at present.
Cisco Systems is set to report third-quarter fiscal 2022 results on May 18. The Zacks Consensus Estimate for CSCO’s earnings is pegged at 86 cents per share, indicating an increase of 3.61% from the prior-year period’s reported figure.
Affirm (AFRM - Free Report) has an Earnings ESP of +23.39% and a Zacks Rank of 3 at present.
Affirm is scheduled to release third-quarter fiscal 2022 results on May 12. The Zacks Consensus Estimate for AFRM’s loss is pegged at 50 cents per share, which is narrower than the prior-year quarter’s loss of 72 cents per share.
Image: Bigstock
Alibaba (BABA) to Report Q4 Earnings: What's in the Cards?
Alibaba Group Holding Limited’s (BABA - Free Report) fourth-quarter fiscal 2022 results are expected to reflect solid momentum across the e-commerce and cloud businesses.
For the fiscal fourth quarter, the Zacks Consensus Estimate for revenues is pegged at $30.8 billion, which suggests growth of 7.6% from the year-ago quarter’s reported figure.
The Zacks Consensus Estimate for earnings is pegged at $1.06 per share, indicating a decline of 32.9% from the prior-year quarter’s reported figure. Notably, the figure moved 6% north over the past 30 days.
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 1.74%.
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 the consumer segment, product enrichment 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.
The infusion of advanced technologies such as Big Data and AI into BABA's e-commerce platform is anticipated to have continued helping it deliver enhanced customer experience.
Apart from this, benefits from the Sun Art consolidation, along with a spike in the average unit price per click and solid contributions from new monetization formats, are expected to have driven growth in the China commerce retail revenues in the quarter under review.
Well-performing Lazada and AliExpress are likely to have aided the performance of Alibaba's International commerce retail business in the fiscal fourth quarter.
The increasing number of paying members on the alibaba.com platform, coupled with solid momentum across cross-border-related value-added services, is expected to have contributed well to the International commerce wholesale business's growth.
Apart from e-commerce, the company's robust cloud segment is expected to have sustained its momentum in the fiscal fourth quarter on a growing number of paying customers.
However, slowing demand from customers in the online entertainment and education fields is anticipated to have been a negative for the cloud business of Alibaba in the quarter to be reported.
Softness in online physical goods GMV on the Taobao and Tmall marketplaces is expected to have acted as a headwind. Sluggishness in Trendyol is likely to have impacted the quarterly performance.
Uncertainties associated with the ongoing pandemic are anticipated to have been concerning in the quarter under review.
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 #3, 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.
Analog Devices (ADI - Free Report) has an Earnings ESP of +0.60% and a Zacks Rank of 2 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Analog Devices is scheduled to release second-quarter fiscal 2022 results on May 18. The Zacks Consensus Estimate for ADI’s earnings is pegged at $2.12 per share, suggesting an increase of 37.7% from the prior-year quarter’s reported figure.
Cisco Systems (CSCO - Free Report) has an Earnings ESP of +0.84% and a Zacks Rank #2 at present.
Cisco Systems is set to report third-quarter fiscal 2022 results on May 18. The Zacks Consensus Estimate for CSCO’s earnings is pegged at 86 cents per share, indicating an increase of 3.61% from the prior-year period’s reported figure.
Affirm (AFRM - Free Report) has an Earnings ESP of +23.39% and a Zacks Rank of 3 at present.
Affirm is scheduled to release third-quarter fiscal 2022 results on May 12. The Zacks Consensus Estimate for AFRM’s loss is pegged at 50 cents per share, which is narrower than the prior-year quarter’s loss of 72 cents per share.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.