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Will JD.com (JD) Stock Surprise Investors in Q1 Earnings?
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A Chinese e-commerce company, JD.com (JD - Free Report) , is slated to report first-quarter 2017 results on May 8.
JD.com has a decent surprise history. The company missed estimates once in the last four quarters with an average four-quarter positive surprise of 0.99%.
Coming to the price performance, in the last one year, shares of JD.com outperformed the Zacks categorized Electronic Commerce industry. While the industry gained 30.6%, the stock returned 38.2%.
Let’s see how things are shaping up for this announcement.
Factors to Consider
JD.com’s fourth-quarter revenues of RMB80.3 billion surged 47% year over year. This was mainly attributed to growth in active user accounts and in the number of fulfilled orders.
JD.com consistently invests to ensure long-term growth, increase brand awareness, broaden product offerings, enhance services offered to sellers on its marketplace platform and expand fulfillment capability. These should strengthen the company’s position and drive results in the to-be-reported quarter.
The company is currently gaining popularity among several international brands. JD.com recently expanded its partnerships with top international brands including DHC, Calbee, Japan’s most popular cross-border snack producer and Mattel, among others.
Management expects fourth-quarter net revenue growth between 34% and 38% on a year-over-year basis.
However, higher operating expenses and increasing competition from Alibaba and other players could weigh on the company’s results.
Earnings Whispers
Our proven model does not conclusively show that JD.com will beat estimates this quarter. That is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. That is not the case here as you will see below.
Zacks ESP: Both the Most Accurate estimate and the Zacks Consensus Estimate stand at a loss of 5 cents. Hence, the difference is 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: JD.com’s Zacks Rank #3 increases the predictive power of ESP. However, we need to have a positive ESP to be confident of a positive earnings surprise. We caution against stocks with a Zacks Rank #4 or 5 (Sell rated) going into the earnings announcement, especially when the company is witnessing negative estimate revisions.
Energy Transfer Partners, L.P. , with an Earnings ESP of +25% and a Zacks Rank #2.
First Solar, Inc. (FSLR - Free Report) , with an Earnings ESP of +142.86% and a Zacks Rank #3.
Will You Make a Fortune on the Shift to Electric Cars?
Here's another stock idea to consider. Much like petroleum 150 years ago, lithium power may soon shake the world, creating millionaires and reshaping geo-politics. Soon electric vehicles (EVs) may be cheaper than gas guzzlers. Some are already reaching 265 miles on a single charge.
With battery prices plummeting and charging stations set to multiply, one company stands out as the #1 stock to buy according to Zacks research.
Image: Bigstock
Will JD.com (JD) Stock Surprise Investors in Q1 Earnings?
A Chinese e-commerce company, JD.com (JD - Free Report) , is slated to report first-quarter 2017 results on May 8.
JD.com has a decent surprise history. The company missed estimates once in the last four quarters with an average four-quarter positive surprise of 0.99%.
Coming to the price performance, in the last one year, shares of JD.com outperformed the Zacks categorized Electronic Commerce industry. While the industry gained 30.6%, the stock returned 38.2%.
Let’s see how things are shaping up for this announcement.
Factors to Consider
JD.com’s fourth-quarter revenues of RMB80.3 billion surged 47% year over year. This was mainly attributed to growth in active user accounts and in the number of fulfilled orders.
JD.com consistently invests to ensure long-term growth, increase brand awareness, broaden product offerings, enhance services offered to sellers on its marketplace platform and expand fulfillment capability. These should strengthen the company’s position and drive results in the to-be-reported quarter.
The company is currently gaining popularity among several international brands. JD.com recently expanded its partnerships with top international brands including DHC, Calbee, Japan’s most popular cross-border snack producer and Mattel, among others.
Management expects fourth-quarter net revenue growth between 34% and 38% on a year-over-year basis.
However, higher operating expenses and increasing competition from Alibaba and other players could weigh on the company’s results.
Earnings Whispers
Our proven model does not conclusively show that JD.com will beat estimates this quarter. That is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. That is not the case here as you will see below.
Zacks ESP: Both the Most Accurate estimate and the Zacks Consensus Estimate stand at a loss of 5 cents. Hence, the difference is 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: JD.com’s Zacks Rank #3 increases the predictive power of ESP. However, we need to have a positive ESP to be confident of a positive earnings surprise. We caution against stocks with a Zacks Rank #4 or 5 (Sell rated) going into the earnings announcement, especially when the company is witnessing negative estimate revisions.
JD.com, Inc. Price and EPS Surprise
JD.com, Inc. Price and EPS Surprise | JD.com, Inc. Quote
Stocks to Consider
AMETEK, Inc. (AME - Free Report) , with an Earnings ESP of +1.61% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Energy Transfer Partners, L.P. , with an Earnings ESP of +25% and a Zacks Rank #2.
First Solar, Inc. (FSLR - Free Report) , with an Earnings ESP of +142.86% and a Zacks Rank #3.
Will You Make a Fortune on the Shift to Electric Cars?
Here's another stock idea to consider. Much like petroleum 150 years ago, lithium power may soon shake the world, creating millionaires and reshaping geo-politics. Soon electric vehicles (EVs) may be cheaper than gas guzzlers. Some are already reaching 265 miles on a single charge.
With battery prices plummeting and charging stations set to multiply, one company stands out as the #1 stock to buy according to Zacks research.
It's not the one you think.
See This Ticker Free >>