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PDD Holdings (PDD) to Report Q3 Earnings: What's in the Cards?
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PDD Holdings Inc. (PDD - Free Report) is scheduled to report third-quarter 2023 results on Nov 28.
For the third quarter, the Zacks Consensus Estimate for sales is pegged at $7.22 billion, indicating growth of 44.6% from the prior-year quarter’s reported figure.
The consensus mark for earnings per share is pinned at $1.23, suggesting a rise of 1.6% from the year-ago quarter’s reported number.
PDD’s earnings surpassed the Zacks Consensus Estimate in all the trailing four quarters, the average surprise being 36.5%.
PDD’s growing efforts to drive innovation across its products and services through advanced technologies are likely to have continued benefiting its upcoming results.
The company’s strength across the e-commerce business on the back of well-performing Pinduoduo is likely to have contributed significantly to the third quarter’s performance.
Pinduoduo’s strengthening efforts toward the integration of online traffic with offline retail experiences are likely to be reflected in the upcoming results.
This apart, PDD’s growing efforts to bolster agriculture and grocery businesses are expected to have contributed well to the top line in the quarter under discussion.
Strengthening partnerships with local communities, shops, farmers and agri-merchants are expected to have aided its performance in the quarter under review.
Increasing consumer interest across different categories like agriculture produce, FMCG, household electronics and cosmetics might have been a tailwind.
Solid momentum across its online marketing and transaction services is expected to have continued driving top-line growth in the quarter under review.
The rising advertising demand from merchants on PDD’s platform is anticipated to have benefited the company in the to-be-reported quarter.
However, softness in China might have been a major concern for the company during the quarter under review.
Increasing expenditure for online and offline advertisements, as well as promotional activities, might have affected the quarterly performance.
Increasing payment processing fees, higher costs for cloud services and expenses associated with online marketing services are expected to be reflected in the third quarter’s results.
What Our Model Says
Our proven model doesn’t conclusively predict an earnings beat for PDD Holdings 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.
PDD currently has an Earnings ESP of +2.04%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
PDD has a Zacks Rank #4 (Sell).
Stocks to Consider
Here are some companies that have the right combination of elements to post an earnings beat this quarter.
Image: Bigstock
PDD Holdings (PDD) to Report Q3 Earnings: What's in the Cards?
PDD Holdings Inc. (PDD - Free Report) is scheduled to report third-quarter 2023 results on Nov 28.
For the third quarter, the Zacks Consensus Estimate for sales is pegged at $7.22 billion, indicating growth of 44.6% from the prior-year quarter’s reported figure.
The consensus mark for earnings per share is pinned at $1.23, suggesting a rise of 1.6% from the year-ago quarter’s reported number.
PDD’s earnings surpassed the Zacks Consensus Estimate in all the trailing four quarters, the average surprise being 36.5%.
PDD Holdings Inc. Price and EPS Surprise
PDD Holdings Inc. price-eps-surprise | PDD Holdings Inc. Quote
Factors to Note
PDD’s growing efforts to drive innovation across its products and services through advanced technologies are likely to have continued benefiting its upcoming results.
The company’s strength across the e-commerce business on the back of well-performing Pinduoduo is likely to have contributed significantly to the third quarter’s performance.
Pinduoduo’s strengthening efforts toward the integration of online traffic with offline retail experiences are likely to be reflected in the upcoming results.
This apart, PDD’s growing efforts to bolster agriculture and grocery businesses are expected to have contributed well to the top line in the quarter under discussion.
Strengthening partnerships with local communities, shops, farmers and agri-merchants are expected to have aided its performance in the quarter under review.
Increasing consumer interest across different categories like agriculture produce, FMCG, household electronics and cosmetics might have been a tailwind.
Solid momentum across its online marketing and transaction services is expected to have continued driving top-line growth in the quarter under review.
The rising advertising demand from merchants on PDD’s platform is anticipated to have benefited the company in the to-be-reported quarter.
However, softness in China might have been a major concern for the company during the quarter under review.
Increasing expenditure for online and offline advertisements, as well as promotional activities, might have affected the quarterly performance.
Increasing payment processing fees, higher costs for cloud services and expenses associated with online marketing services are expected to be reflected in the third quarter’s results.
What Our Model Says
Our proven model doesn’t conclusively predict an earnings beat for PDD Holdings 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.
PDD currently has an Earnings ESP of +2.04%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
PDD has a Zacks Rank #4 (Sell).
Stocks to Consider
Here are some companies that have the right combination of elements to post an earnings beat this quarter.
Snowflake (SNOW - Free Report) has an Earnings ESP of +67.33% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Snowflake is set to announce its third-quarter fiscal 2024 results on Nov 29. SNOW shares have gained 17.7% year to date.
Costco Wholesale (COST - Free Report) has an Earnings ESP of +3.49% and a Zacks Rank #3.
Costco is set to announce its first-quarter fiscal 2024 results on Dec 14. COST shares have gained 30% year to date.
American Woodmark (AMWD - Free Report) has an Earnings ESP of +14.30% and a Zacks Rank #3.
American Woodmark is set to announce its second-quarter fiscal 2024 results on Nov 30. AMWD shares have increased 51.1% year to date.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.