Chinese e-commerce company JD.com Inc. ((JD) is set to release second-quarter 2021 earnings on August 23.
2Q Expectations
Stocksearning Estimated EPS stands at $0.32
JD.com beat estimated EPS 66% times
The estimated EPS for this quarter is 0.32. Historical EPS Performance for last 12 Qtrs is Total Beat: 8 (66%) Total Meet: 0 (0%) Total Miss: 4 (33%) (Get Historical Actual vs Estimated EPS)
1Q Snapshot
Revenue--RMB203.2 billion (US$131.0 billion), an increase of 39.0% YoY
Net profit loss-- RMB3.6 billion (US$0.6 billion), compared to RMB1.1 billion for the same period last year
EPS-- RMB2.25 (US$0.34), compared to RMB0.72 for the first quarter of 2020
Impact on JD.com share price
The stock has lost 6% since it last posted earnings. Following Earnings result, share price were UP 16 times out of last 27 Qtrs. So, Historical price reaction suggests 59% probability for share price to go UP following earnings release. The average daily volume post earnings release is 18.74 million.
According to Stocksearning proprietory algorithm the first day predicted move after earnings release is 4% while the 7th day change in the price is 7%
Analysts’ Comments
On July 22, DZ Bank analyst Manuel Muehl downgraded JD.com to “Sell” from “Buy” and has price target of $62. Further on July 13, Arete analyst Richard Kramer lowered the firm's price target on JD.com to $95 from $100 maintaining a “Buy” rating. “The analyst sees no end in sight for the increasing regulatory overhang on Chinese internet stocks. Companies are still exposed to "incremental risk around the data privacy law," and the next phase will focus on how firms reform practices or how the Chinese government enforces regulations, Kramer tells investors in a research note. The analyst sees this having a "major impact" on the monetization of Tencent and Alibaba investments.”
On July 2, Goldman Sachs analyst Ronald Keung raised the firm's price target on JD.com to $130 from $119 maintaining a “Conviction Buy” rating on the shares. “The analyst expects the company to maintain "solid momentum" for its core JD Retail business in Q2. The stock's current share price implies either fully valuing JD Retail and getting everything else for free, or valuing its listed parts, and getting JD Retail at a significantly discounted valuation, Keung tells investors in a research note.”
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