Back to top

Image: Bigstock

DoorDash Set to Report Q3 Earnings: What's in Store for the Stock?

Read MoreHide Full Article

DoorDash (DASH - Free Report) is set to release its third-quarter 2024 results on Oct. 30.

For the third quarter the Zacks Consensus Estimate for earnings is pegged at 21 cents per share, increased by a penny in the past 30 days. DASH reported a loss of 19 cents per share in the year-ago quarter.

Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.

The Zacks Consensus Estimate for revenues is currently pegged at $2.66 billion, suggesting a 23.06% increase year over year. 

DoorDash, Inc. Price and EPS Surprise

DoorDash, Inc. Price and EPS Surprise

DoorDash, Inc. price-eps-surprise | DoorDash, Inc. Quote

The company’s earnings surpassed the Zacks Consensus Estimate in two of the trailing four quarters while missing the same twice, the negative average surprise being 91.98%.

Let’s see how things have shaped up for this announcement:

Factors to Note

DoorDash’s third-quarter 2024 performance is expected to have benefited from strong total orders and Marketplace GOV, enhanced logistics efficiency and an increasing contribution from advertising.

For third-quarter 2024, the company anticipates Marketplace GOV in the range of $19.4-$19.8 billion. The Zacks Consensus Estimate for third-quarter Marketplace GOV is pegged at $19.72 billion, suggesting 17.26% year-over-year growth.

DoorDash has reported strong consumer demand, particularly in digital and omnichannel experiences. The trend of increasing digital orders, especially in restaurants and grocery segments, is likely to have contributed positively to the to-be-reported quarter.

DoorDash’s expanding partner network, namely Eataly, El Super and Fiesta Mart, to broaden the reach of on-demand grocery delivery across multiple regions is expected to have boosted total orders growth in the quarter under review.

In the second quarter, total orders increased 19% year over year to 635 million. The Zacks Consensus Estimate for third-quarter total orders is pegged at $639 million, suggesting 17.67% year-over-year growth.

DoorDash’s growing efforts to expand its grocery offerings, improve user experience and increase DashPass adoption and the retention of customers are expected to have boosted growth in the grocery category in the to-be-reported quarter.

The subscription service, DashPass, has reached an all-time high in subscribers. This growth is expected to have enhanced customer loyalty and increased order frequency in the third quarter.

Increasing monthly active users with strong contributions from domestic and international markets is expected to have aided DASH’s top-line growth.

However, DoorDash is facing extensive competition in its largest business category, the local food delivery logistics, which is expected to have hurt top-line growth in the to-be-reported quarter.

What Our Model Says

Per the Zacks model, 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. That’s the exact case here.

DoorDash has an Earnings ESP of +28.88% and a Zacks Rank #3 at present. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Other Stocks to Consider

Here are some companies worth considering, as our model shows that these have the right combination of elements to beat on earnings in their upcoming releases:

Shopify (SHOP - Free Report) has an Earnings ESP of +4.13% and a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.

Shopify shares have gained 1.5% year to date. SHOP is set to report its third-quarter 2024 results on Nov. 12.

Garmin (GRMN - Free Report) has an Earnings ESP of +1.03% and a Zacks Rank of #2 at present.

Garmin shares have gained 26.3% year to date. GRMN is set to report its third-quarter 2024 results on Oct. 30.

Cognizant Technology Solutions (CTSH - Free Report) has an Earnings ESP of +2.86% and a Zacks Rank #3.

Cognizant’s shares have declined 0.9% year to date. CTSH is set to report its third-quarter 2024 results on Oct. 30.

Published in