JD.com, Inc. JD is slated to report third-quarter 2020 results on Nov 16.
For the third quarter, the Zacks Consensus Estimate for revenuesis pegged at $24.93 billion, indicating an improvement of 32.1% from the year-ago quarter’s reported figure.
Moreover, the consensus mark for earnings is pegged at 43 cents per share, suggesting a 48.3% rise from the prior-year quarter’s reported number. Further, the figure has been revised 2.4% upward over the past 30 days.
Factors to Note
The company’s JD Retail segment comprising e-commerce business is expected to have remained as the key catalyst in the third quarter, courtesy of a strengthening momentum across lower-tier cities.
Moreover, the online retail market boom amid coronavirus-induced shelter-in-place restrictions is expected to have aided the performance of the company’s JD Retail segment in the quarter to be reported.
Moreover, the growing traction across supermarket category, especially FMCG and fresh produce, is likely to contribute well to the company’s third-quarter results.
Additionally, JD.com’s strong efforts in offering services at the best price on the back of its scale and lowerprocurement costs from suppliers are expected to have benefited itsthird-quarter performance.
JD.com, Inc. Price and EPS Surprise
JD.com, Inc. price-eps-surprise | JD.com, Inc. Quote
Further,strengthening of the company’s omnichannel offerings is also expected to get reflected in JD Retail’s September-quarter revenue results. Additionally, the new experience store, namely JD E-SPACE and new omnichannel store formats, such as 7FRESH LIFE and SEVEN FUN might have benefited the company.
Moreover, the company’s intensified focus on ensuring supply and fulfillment of essential products to customers during the ongoing pandemic situation might significantly aid its impending quarterly results.
Also, the rising momentum of JD Health as a result of 24/7 free online medical consultation and online pharmacy retail services is likely to get reflected in the company’s to-be-reported results.
Additionally, the strong New Businesses segment, which comprises logistics services, technology services and overseas businesses, might have driven the company’s third-quarter revenues higher.
However, the company’s mounting investment costs are likely to have weighed on its third-quarter performance. Moreover, severe competitive pressures in the e-commerce market from Alibaba (BABA) might have been a headwind.
What Our Model Says
Our proven model does not conclusively predict an earnings beat for JD.com 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. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
JD.com has an Earnings ESP of -0.39% and a Zacks Rank #3, currently.
Stocks to Consider
Here are some stocks worth keeping tabs on, as our model shows that these have the right combination of elements to deliver an earnings beat in the upcoming releases.
NVIDIA Corporation NVDA has an Earnings ESP of +1.75% and a Zacks Rank #2, presently. You can see the complete list of today’s Zacks #1 Rank stocks here.
Momo Inc. MOMO has an Earnings ESP of +5.41% and a Zacks Rank of 3 at present.
NetApp, Inc. NTAP has an Earnings ESP of +2.78% and is Zacks #3 Ranked.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
