JD.com Inc. (NASDAQ: JD) has confirmed the release date for its Q4 2021 earnings report, which is on Thursday, March 10, 2022, before markets open.
What to look for: JD.com’s strong momentum in its logistics JD retail division, which includes both external and internal logistics, is expected to have helped the fourth-quarter results. The area has been performing well for a long time, thanks to the company's advancements in innovative tech and logistics. Due to the company's increased focus on lower-tier regions and rising technological initiatives, the trend is anticipated to continue in the coming quarter.
Earnings: Stockearning’s estimated EPS for the fourth quarter is pegged at $0.27 per share, representing a YoY growth of 17.4%. In the third quarter, the company had a net loss per ADS of $0.28, and Non-GAAP diluted net income per ADS was $0.49. Historical EPS Performance for the past 12 quarters shows that the company has beaten estimates 17 times (56%), met once (3%), and missed ten times (33%).
Revenue: Fourth-quarter revenue is expected to be $43.01 billion representing a YoY increase of 25.1%. For the third quarter, the company had revenues of $33.9 billion, which was a YoY growth of 25.5%. Net product revenues were up 22.9% in the third quarter, with net service revenues increasing 43.3% compared to a year before.
Stock Movement: JD shares have lost 27.2% since the company released its last earnings release. Interestingly, following the earnings release, the company’s shares have been UP 18 times in the past 29 quarters. So, the historical price reaction suggests a 62% probability of the share price going UP following the earnings release. According to the Stockearning algorithm, the predicted volatility on the first day is +/-4%, while the predicted volatility on the seventh day is +/-8%.
What analysts are saying: Morgan Stanley analyst Eddy Wang slashed his price target on the stock from $98 to $85 and maintained a Buy rating on the stock stating that he has lowered his non-GAAP net profit projection by 2022/23 to reflect lower margin and revenue predictions because of weak consumption. Vipshop and Alibaba reported weak than anticipated fourth-quarter results and offered a conservative outlook for Q1, but JD had "much more resilient revenue growth than peers in 2021," and 2022 revenue growth is "key to watch" when the company releases earnings on March 10, 2022.
Stifel analyst Scott Devitt lowered his price target on the stock from $110 to $85 but kept a Buy rating in the shares as he previewed results for his Chinese e-commerce coverage ahead of quarterly reports from the sector. In addition, Devitt has lowered his Q4 total revenue growth prediction from 26.2% to 21.6% and stated that he doesn’t expect substantial growth acceleration on Q1 2022 because of prevailing macroeconomic uncertainty.
Atlantic equities commenced coverage on JD.com with a Buy rating and a price target of $100. Recently Macquarie analyst Ellie Jiang resumed coverage on the stock with a Buy rating and a price target of $112. Jiang told investors in a research note that the company's main competencies in logistics infrastructure and supply chain have “built a strong service moat,” and growth momentum is expected.
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