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JD.com (JD) to Report Q1 Earnings: What's in the Offing?

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JD.com, Inc. (JD - Free Report) is slated to report first-quarter 2022 results on May 17.

For the first quarter, the Zacks Consensus Estimate for revenues is pegged at $36.5 billion, indicating an improvement of 17.7% from the year-ago quarter’s reported figure.

The consensus mark for earnings is pegged at 34 cents per share, suggesting a 10.5% fall from the prior-year quarter’s reported number.

JD.com surpassed the Zacks Consensus Estimate in all of the trailing four quarters, delivering an earnings surprise of 24.7%, on average.

JD.com, Inc. Price and EPS Surprise

 

JD.com, Inc. Price and EPS Surprise

JD.com, Inc. price-eps-surprise | JD.com, Inc. Quote

Factors to Note

The company’s JD Retail segment, comprising the e-commerce business, is expected to have been the key catalyst in the first quarter, courtesy of a strengthening momentum across lower-tier cities.

The growing traction across the supermarket category, especially FMCG and fresh produce, is likely to have contributed well to the company’s first-quarter performance.

Increasing traction among the beauty brands on the back of the rising number of flagship stores of these brands on JD.com is expected to have aided its momentum across customers in the quarter under review.

JD’s strong efforts in offering services at the best prices on the back of its scale and lower procurement costs from suppliers are expected to have benefited its first-quarter performance.

The strengthening of the company’s omnichannel offerings is also expected to get reflected in JD Retail’s revenue results.

JD.com’s intensified focus on ensuring the supply and the distribution of essential products to customers amid the pandemic is anticipated to have significantly aided its quarterly performance.

The solid momentum of JD Health on the heels of robust online pharmacy retail services along with strong logistic support is likely to have aided the company in the to-be-reported quarter.

Strengthening of the JD Logistics business is anticipated to have driven JD.com’s quarterly performance.

However, the company’s mounting fulfillment expenses, including procurement, warehousing, delivery, customer service and payment processing expenses, are likely to have weighed on its first-quarter performance.

Rising marketing and R&D costs are expected to have hindered JD.com’s margin expansion. Further, uncertainties associated with the ongoing pandemic are likely to have been concerning for JD.

What Our Model Says

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

JD.com has an Earnings ESP of 0.00% and a Zacks Rank #4 (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.

Cisco Systems (CSCO - Free Report) has an Earnings ESP of +0.84% and a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

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 3.6% from the prior-year period’s reported figure.

BJ’s Wholesale Club (BJ - Free Report) has an Earnings ESP of +5.04% and a Zacks Rank of 3 at present.

BJ’s Wholesale Club is scheduled to release first-quarter 2022 results on May 19. The Zacks Consensus Estimate for BJ’s earnings is pegged at 72 cents per share, which is in-line with the year-ago reported figure.

Advanced Auto Parts (AAP - Free Report) has an Earnings ESP of +4.89% and a Zacks Rank of 3 at present.

Advanced Auto Parts is scheduled to release first-quarter 2022 results on May 23. The Zacks Consensus Estimate for AAP’s earnings is pegged at $3.50 per share, indicating an increase of 4.8% from the prior-year period’s reported figure.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

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