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Tencent (TCEHY) to Report Q2 Earnings: What's in the Cards?
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Tencent’s (TCEHY - Free Report) upcoming second-quarter 2021 results are expected to have benefited from its solid gaming portfolio as well as strong distribution capability.
For second-quarter 2021, the Zacks Consensus Estimate for earnings is currently pegged at 54 cents per share, unchanged over the past 30 days and indicating 22.7% growth from the figure reported in the year-ago quarter.
The consensus mark for revenues is pegged at $21.54 billion, which suggests 32.8% increase from the year-ago quarter’s reported figure.
Tencent’s earnings beat the Zacks Consensus Estimate in three of the trailing four quarters, while meeting the same in the remaining one, the average surprise being 3.28%.
Let’s see how things have shaped up for Tencent prior to this announcement.
Factors to Note
Tencent’s second-quarter 2021 results are expected to have benefited from its dominance as one of the biggest game distributors in China, which is the world’s largest video game market, in terms of users and revenues.
The company’s Gaming revenues are likely to have benefited from strong demand for mobile games in China, as well as for mobile and PC games in international markets
Growth in digital content revenues, owing to video streaming subscriptions and live broadcast services, is expected to have aided social network revenues.
Momentum in payment business is expected to have continued, owing to fast penetration into key sectors, including finance. This is expected to have driven FinTech and Business Services revenues in the to-be-reported quarter.
However, sluggish ad spending from the education vertical due to government crackdown is expected to have hurt ad revenues in the to-be-reported quarter.
What Our Model Indicates
Per the Zacks model, 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.
Tencent has an Earnings ESP of -0.94% and a Zacks Rank #5 (Strong Sell). You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks to Consider
Here are some companies worth considering as per our model, as these have the right combination of elements to beat on earnings this reporting cycle:
Image: Bigstock
Tencent (TCEHY) to Report Q2 Earnings: What's in the Cards?
Tencent’s (TCEHY - Free Report) upcoming second-quarter 2021 results are expected to have benefited from its solid gaming portfolio as well as strong distribution capability.
For second-quarter 2021, the Zacks Consensus Estimate for earnings is currently pegged at 54 cents per share, unchanged over the past 30 days and indicating 22.7% growth from the figure reported in the year-ago quarter.
The consensus mark for revenues is pegged at $21.54 billion, which suggests 32.8% increase from the year-ago quarter’s reported figure.
Tencent’s earnings beat the Zacks Consensus Estimate in three of the trailing four quarters, while meeting the same in the remaining one, the average surprise being 3.28%.
Tencent Holding Ltd. Price and EPS Surprise
Tencent Holding Ltd. price-eps-surprise | Tencent Holding Ltd. Quote
Let’s see how things have shaped up for Tencent prior to this announcement.
Factors to Note
Tencent’s second-quarter 2021 results are expected to have benefited from its dominance as one of the biggest game distributors in China, which is the world’s largest video game market, in terms of users and revenues.
The company’s Gaming revenues are likely to have benefited from strong demand for mobile games in China, as well as for mobile and PC games in international markets
Growth in digital content revenues, owing to video streaming subscriptions and live broadcast services, is expected to have aided social network revenues.
Momentum in payment business is expected to have continued, owing to fast penetration into key sectors, including finance. This is expected to have driven FinTech and Business Services revenues in the to-be-reported quarter.
However, sluggish ad spending from the education vertical due to government crackdown is expected to have hurt ad revenues in the to-be-reported quarter.
What Our Model Indicates
Per the Zacks model, 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.
Tencent has an Earnings ESP of -0.94% and a Zacks Rank #5 (Strong Sell). You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks to Consider
Here are some companies worth considering as per our model, as these have the right combination of elements to beat on earnings this reporting cycle:
CyberArk Software (CYBR - Free Report) has an Earnings ESP of +37.93% and a Zacks Rank of 2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Agilent (A - Free Report) has an Earnings ESP of +1.16% and is #2 Ranked.
Cisco Systems (CSCO - Free Report) has an Earnings ESP of +1.82% and a Zacks Rank #3.