JD.com (JD) to Release Q4 Earnings: What's in the Offing?
JD.com, Inc. JD is slated to report fourth-quarter 2022 results on Mar 9.
For the fourth quarter, the Zacks Consensus Estimate for revenues is pegged at $43.18 billion, indicating a decline of 0.3% from the year-ago quarter’s reported figure.
The consensus mark for earnings is pegged at 52 cents per share, suggesting 48.6% growth from the prior-year quarter’s reported number.
JD.com surpassed the Zacks Consensus Estimate in all the trailing four quarters, delivering an earnings surprise of 29.35% on average.
JD.com, Inc. Price and EPS Surprise
JD.com, Inc. price-eps-surprise | JD.com, Inc. Quote
Factors to Note
The company’s strong momentum across the JD Retail segment is expected to have been the key growth driver in the fourth quarter.
Strengthening omnichannel offerings of JD are also expected to get reflected in JD Retail’s quarterly results.
The company’s strong efforts in offering services at the best price on the back of its scale and lower procurement costs from suppliers are expected to have been tailwinds.
JD.com’s strong relationships with high-end brands such as FENDI, Lululemon, Christian Louboutin Beauty, BOBBI BROWN and LA PRAIRIE are expected to have continued to benefit JD Retail’s fourth-quarter performance.
Apart from retail efforts, the impacts of the rising momentum of JD Health on the heels of 24/7 free online medical consultation and online pharmacy retail services are expected to get reflected in the company’s to-be-reported quarter’s results.
The strong New Businesses segment is anticipated to have driven the company’s fourth-quarter revenues.
Solid momentum across JD Logistics on the back of the growing network of domestic and overseas warehouses and transportation is expected to have contributed well.
The company’s expanding quick delivery services in the lower-tier cities are likely to have aided JD Logistics in gaining traction in these cities in the fourth quarter. The strengthening of the logistics network in these cities is anticipated to have contributed to the quarter’s performance.
However, the company’s mounting fulfillment expenses, including procurement, warehousing, delivery, customer service and payment processing expenses, are likely to have weighed on its fourth-quarter performance.
Rising marketing and R&D costs are expected to have hindered JD.com’s margin expansion. Uncertainties associated with the ongoing pandemic are likely to have been other concerns for JD.
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 0.00% and a Zacks Rank #2, currently.
Stocks to Consider
Here are some stocks that you may consider, as our model shows that they have the right combination of elements to beat on earnings this season.
Vertix VERX has an Earnings ESP of +11.11% and carries a Zacks Rank of #1, at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Vertix shares are up 18.6% in the past year. VERX is set to report its fourth-quarter fiscal 2022 results on Mar 8.
Catalyst Pharmaceuticals CPRX has an Earnings ESP of +6.8% and a Zacks Rank #1.
Catalyst Pharmaceuticals shares have jumped 93.9% in the past year. CPRX is set to report its fourth-quarter 2022 results on Mar 15.
Central Valley Community Bancorp CVCY has an Earnings ESP of +3.79% and a Zacks Rank #2.
Central Valley Community Bancorp shares are up 9.1% in the past year. CVCY is set to report its first-quarter 2023 results on Apr 19.
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