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JD.com (JD) to Report Q4 Earnings: What's in the Offing?

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JD.com, Inc. (JD - Free Report) is slated to report fourth-quarter 2021 results on Mar 10.

For the fourth quarter, the Zacks Consensus Estimate for revenues is pegged at $43.01 billion, indicating an improvement of 25.1% from the year-ago quarter’s reported figure.

The consensus mark for earnings is pegged at 27 cents per share, suggesting 17.4% growth from the prior-year quarter’s reported number.

JD.com surpassed the Zacks Consensus Estimate in all of the trailing four quarters, delivering an earnings surprise of 18.4%, on average.

JD.com, Inc. Price and EPS Surprise

 

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.

Its intensified focus to ensure the supply and fulfillment of essential products to customers amid the pandemic is expected to have been a positive.

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.

The growing traction across the supermarket category, especially FMCG and fresh produce, is likely to have contributed well to the company’s fourth-quarter performance.

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 also 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 higher.

Solid momentum across JD Logistics on the back of the growing network of warehouses is expected to have contributed well.

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. Further, uncertainties associated with the ongoing pandemic are likely to have been concerning 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 currently has an Earnings ESP of 0.00% and a Zacks Rank #4.

Stocks to Consider

Here are some stocks that you may consider as our model shows that these have the right combination of elements to beat on earnings this season.

DICK’S Sporting Goods (DKS - Free Report) has an Earnings ESP of +0.34% and it carries a Zacks Rank of 3 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

DICK’s Sporting is scheduled to release fourth-quarter fiscal 2022 results on Mar 8. The Zacks Consensus Estimate for DKS’ earnings is pegged at $3.39 per share, suggesting an increase of 39.5% from the prior-year reported figure.

Amryt Pharma has an Earnings ESP of +33.33% and a Zacks Rank #3 at present.

Amryt Pharma is set to report the fourth-quarter fiscal 2021 results on Mar 9. The Zacks Consensus Estimate for AMYT’s loss is pegged at 14 cents per share. Notably, it reported a loss of 28 cents per share in the year-ago quarter.

Casey’s General Stores (CASY - Free Report) has an Earnings ESP of +5.19% and a Zacks Rank #3 at present.

Casey’s is scheduled to release third-quarter fiscal 2022 results on Mar 8. The Zacks Consensus Estimate for CASY’s earnings is pegged at $1.43 per share, which suggests an increase of 37.5% from the prior-year reported figure.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.


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