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What You Need to Know Ahead of Alibaba's (BABA) Q4 Earnings?
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Alibaba Group Holding Limited (BABA - Free Report) is scheduled to report fourth-quarter fiscal 2023 results on May 18.
For the fiscal fourth quarter, the Zacks Consensus Estimate for revenues is pegged at $30.87 billion, suggesting a 4.1% dip from the year-ago quarter’s reported figure.
The Zacks Consensus Estimate for earnings is pegged at $1.30 per share, indicating growth of 4% from the prior-year quarter’s reported figure. The figure has moved 0.6% south over the past 30 days.
Earnings surpassed the Zacks Consensus Estimate in all the trailing four quarters, the average surprise being 16.35%.
Alibaba Group Holding Limited Price and EPS Surprise
Alibaba's solid 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 expected to have continuously enhanced its customer experience.
A well-performing Lazada is likely to have aided the performance of Alibaba's International commerce retail business in the fiscal fourth quarter.
Solid momentum across cross-border-related value-added services is expected to have contributed well to the International commerce wholesale business.
Increasing traction in direct sales businesses like Alibaba Health and Freshippo is anticipated to have been a tailwind to BABA’s China commerce retail business in the quarter under review.
Apart from e-commerce, Alibaba’s robust cloud segment is expected to have sustained its momentum in the fiscal fourth quarter, with a growing number of paying customers. Moreover, strength in the financial services, public services and telecommunications industries is likely to have constantly benefited Alibaba Cloud’s performance.
Robust Cainiao logistics services are expected to have driven the quarterly performance.
However, softness in online physical goods GMV at the Taobao and Tmall marketplaces is likely to have been a headwind for China’s commerce retail business.
The weakening momentum of AliExpress in Europe due to supply-chain and logistic disruptions as a result of the ongoing Russia-Ukraine conflict is expected to have been a woe.
Sluggishness in Alibaba Pictures, Youku and other entertainment businesses is likely to have been concerning in the fiscal fourth quarter.
Uncertainties associated with the coronavirus pandemic in China are expected to have been concerning for the company.
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, as elaborated below.
BABA currently has a Zacks Rank #3 (Hold) and an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks to Consider
Here are some stocks worth considering, as our model indicates that they have the right combination of elements to beat on earnings this season.
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 year-over-year rise of 8.4%.
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, implying a 12.4% increase 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.
Image: Bigstock
What You Need to Know Ahead of Alibaba's (BABA) Q4 Earnings?
Alibaba Group Holding Limited (BABA - Free Report) is scheduled to report fourth-quarter fiscal 2023 results on May 18.
For the fiscal fourth quarter, the Zacks Consensus Estimate for revenues is pegged at $30.87 billion, suggesting a 4.1% dip from the year-ago quarter’s reported figure.
The Zacks Consensus Estimate for earnings is pegged at $1.30 per share, indicating growth of 4% from the prior-year quarter’s reported figure. The figure has moved 0.6% south over the past 30 days.
Earnings surpassed the Zacks Consensus Estimate in all the trailing four quarters, the average surprise being 16.35%.
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 solid 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 expected to have continuously enhanced its customer experience.
A well-performing Lazada is likely to have aided the performance of Alibaba's International commerce retail business in the fiscal fourth quarter.
Solid momentum across cross-border-related value-added services is expected to have contributed well to the International commerce wholesale business.
Increasing traction in direct sales businesses like Alibaba Health and Freshippo is anticipated to have been a tailwind to BABA’s China commerce retail business in the quarter under review.
Apart from e-commerce, Alibaba’s robust cloud segment is expected to have sustained its momentum in the fiscal fourth quarter, with a growing number of paying customers. Moreover, strength in the financial services, public services and telecommunications industries is likely to have constantly benefited Alibaba Cloud’s performance.
Robust Cainiao logistics services are expected to have driven the quarterly performance.
However, softness in online physical goods GMV at the Taobao and Tmall marketplaces is likely to have been a headwind for China’s commerce retail business.
The weakening momentum of AliExpress in Europe due to supply-chain and logistic disruptions as a result of the ongoing Russia-Ukraine conflict is expected to have been a woe.
Sluggishness in Alibaba Pictures, Youku and other entertainment businesses is likely to have been concerning in the fiscal fourth quarter.
Uncertainties associated with the coronavirus pandemic in China are expected to have been concerning for the company.
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, as elaborated below.
BABA currently has a Zacks Rank #3 (Hold) and an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks to Consider
Here are some stocks worth considering, as our model indicates 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 year-over-year rise of 8.4%.
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, implying a 12.4% increase 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.