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Qudian (QD) to Report Q2 Earnings: What's in the Cards?

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Qudian Inc. (QD - Free Report) is slated to announce second-quarter 2019 results on Aug 16, before the market opens. The China-based company’s quarterly earnings are expected to grow year over year.

In the first quarter of 2019, the company’s earnings surpassed the Zacks Consensus Estimate. Results benefited from an increase in total revenues along with lower expenses.

Notably, the company’s Zacks Consensus Estimate for earnings of 53 cents for the to-be-reported quarter has remained unchanged over the past seven days. The figure indicates rise of 55.9% from the year-ago quarter’s reported number.

Factors to Influence Q2 Results

Given the continued growth in Qudian’s business, its loan balance in the to-be-reported quarter is likely to increase.

Therefore, with higher loan origination volume, the company’s loan facilitation income and financing income are likely to improve, thereby positively impacting top-line growth. While slowdown in China economy may have a slight adverse impact, overall revenues are expected to grow.

On the cost front, given the company’s continued expenditure on research and development along with the rise in staff salary, overall expenses are likely to remain elevated in the to-be-reported quarter.

Earnings Whispers

Here is what our quantitative model predicts:

We cannot conclusively predict whether Qudian will be able to beat earnings estimates this time around. That’s because it does not have the right combination of the two key ingredients — a positive Earnings ESP and a Zacks Rank #3 (Hold) or higher, which are required to be reasonably confident of an earnings beat.

You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Earnings ESP: The Earnings ESP for Qudian is 0.00%.

Zacks Rank: Qudian currently sports a Zacks Rank #1 (Strong Buy). While this increases the predictive power of the ESP, we also need a positive Earnings ESP to be sure of an earnings surprise call.

Stocks to Consider

Over the past 60 days, T. Rowe Price Group, Inc. (TROW - Free Report) has witnessed an upward earnings estimate revision of 4.1% for the current year. So far this year, its share price has risen 17.6%. The stock currently sports a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.

Eaton Vance Corp. (EV - Free Report) also flaunts a Zacks Rank of 1 at present. Over the past 60 days, its earnings estimates for fiscal 2019 have been marginally revised upward. Shares of the company have rallied 15.9% year to date.

Over the past 60 days, Ameriprise Financial, Inc.’s (AMP - Free Report) earnings estimates have been revised 1% upward for the current year. Additionally, its share price has risen 23.3% so far this year. It currently carries a Zacks Rank #2 (Buy).

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