Dada Nexus Limited (NASDAQ: DADA) will release its unaudited Q2 2021 financial results on September 7, 2021, after US markets close.
What to look for
Analysts are expecting the company to post results topping estimates when the company releases its Q2 2021 results. In the second quarter, Morgan Stanley raised its interest in Dada nexus by 1,437.8%, according to its Form 13F filing with the SEC. Recently the company ASUS and JD.com formed a partnership focusing on digital transformation to enhance the shopping experience and fulfillment efficiency off laptops and computer accessories. In 2H 2021, ASUS stores will have one-hour shopping when customers order through Dada’s JS Daojia, an on-demand platform.
Earnings: Stockearning’s Estimated EPS for Dada Nexus’ Q2 2021 is a loss of $0.14 per share. Historical EPS performance over the past 12 quarters shows that the company has topped estimates twice (50%) and missed earnings estimates once (25%). In Q1, the company posted earnings per share loss of $0.46, beating estimates of a loss of $0.48 per share.
Revenue: In June, the company announced Q1 2021 revenue of RMB1, 672.8 million, a YoY increase of 52.1%. Net loss attributable to shareholders was RMB710.3 million or RMB0.75 per diluted and basic share. At the time, the company issued revenue guidance for Q2 2021 of between RMB1,400 and RMB1,450 million, a pro forma YoY revenue growth of 72% to 78%.
Historical Price Reaction into Earnings: Since the last earnings release, the stock price has lost 8%. Following the earnings release, the stock price was UP three times in the last four quarters. According to the Stockearnings algorithm, the predicted first-day move of the stock price is 16% following the earnings release, while the predicted move on the seventh day is 29%.
What analysts are saying
Recently, Citi analysts Alicia Yap increased the firm's target price of Dada Nexus stock from $36 to $37 and maintained a "Buy" rating on the stock given its exceptional Q1 2021 performance. Also, JPMorgan analyst Andre Change started coverage in the stock with a "Buy" rating and a target price of $40. In a note to investors, Chang said that although the sock may seem volatile in the near term, there are catalysts in the next six to twelve months, including revenue growth re-acceleration beyond Q1. In addition, the analyst indicated that the online grocery sector price competition is at its peak, and the company's loss will improve alongside the industry in 2H 2021.
Related News:
PT Telekomunikasi Indonesia, Tbk (NYSE: TLK) Earnings Expectations, Stock Price 56% likely To Drop After Earnings Release
Microvast Holdings Inc. (NASDAQ: MVST) Earnings Expectation, Fiscal 2021 Revenue of Between $145M and $155M
Broadcom Inc. (NASDAQ: AVGO) Earnings Expectations, Q3 Revenue To Top Estimates at $6.75 Billion