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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 2023 results on May 11.

For the first quarter, the Zacks Consensus Estimate for revenues is pegged at $34.87 billion, indicating a decline of 7.8% from the year-ago quarter’s reported figure.

The consensus mark for earnings is pegged at 60 cents per share, suggesting 50% growth from the prior-year quarter’s reported number.

JD.com’s earnings surpassed the Zacks Consensus Estimate in all the trailing four quarters, the average being 30.6%.

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

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

Increasing traction among the home appliances and electronics categories owing to the rising number of their flagship stores on JD.com is expected to have aided its momentum across customers in the quarter under review. The recent launch of eight such flagship stores is expected to have contributed well.

Further, JD’s partnership with a luxury jewelry brand, namely Tiffany & Co., to launch the official flagship store of the brand might have continued to benefit the upcoming results.

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 third-quarter performance.

The strengthening of JD.com’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 distribution of essential products to customers amid the pandemic is anticipated to have significantly aided its quarterly performance.

Apart from retail efforts, the impacts of the rising momentum of JD Health on the heels of 24/7 free online medical consultation and online pharmacy retail services are expected to get reflected in the company’s to-be-reported quarter results.

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

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

Further, uncertainties associated with the coronavirus pandemic are likely to have been other concerns 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, as you see below. 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 #3 (Hold), currently.

Stocks to Consider

Here are some stocks worth considering, as our model shows that they have the right combination of elements to beat on earnings this season.

Autodesk (ADSK - Free Report) has an Earnings ESP of +1.76% and a Zacks Rank #3 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

ADSK is scheduled to release first-quarter 2024 results on May 25. The Zacks Consensus Estimate for ADSK’s earnings is pegged at $1.55 per share, suggesting a rise of 8.4% year over year.

Agilent Technologies (A - Free Report) has an Earnings ESP of +0.40% and currently carries a Zacks Rank #2.

Agilent Technologies is set to report second-quarter fiscal 2023 results on May 23. The Zacks Consensus Estimate for A’s earnings is pegged at $1.27 per share, suggesting an increase of 12.4% from the prior-year quarter’s reported figure.

Cisco Systems (CSCO - Free Report) has an Earnings ESP of +1.59% and a Zacks Rank #3 at present.

CSCO is scheduled to report third-quarter fiscal 2023 results on May 17. The Zacks Consensus Estimate for CSCO’s earnings is pegged at 97 cents per share, suggesting an increase of 11.5% from the prior-year quarter’s reported figure.

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

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