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What's in the Offing for Alibaba (BABA) in Q1 Earnings?
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Alibaba Group Holding Limited (BABA - Free Report) is scheduled to report first-quarter fiscal 2023 results on Aug 4.
For the fiscal first quarter, the Zacks Consensus Estimate for earnings is pegged at $1.50 per share, indicating a decline of 41.6% from the prior-year quarter’s reported figure.
The consensus mark for the same is pegged at $31.02 billion, which suggests a decline of 2.7% from the year-ago quarter’s reported figure.
The company’s earnings surpassed the Zacks Consensus Estimate in three of the trailing four quarters, while missing the same once, the average surprise being 9.98%.
Alibaba Group Holding Limited Price and EPS Surprise
Alibaba’s strong efforts to add value to consumers and sellers through product enrichment efforts and platform innovations are expected to have driven growth in its e-commerce business in the to-be-reported quarter by driving its customer momentum.
New monetization formats and strengthening online physical goods gross merchandise volume on China retail marketplaces are expected to have aided customer management revenues of the company in the quarter under review.
The growing momentum across paying members on 1688.com is expected to have been a tailwind for the China commerce wholesale business in the fiscal first quarter.
The infusion of advanced technologies, along with increasing validation for Taobao and Tmall portals, is expected to have been beneficial in the quarter to be reported. The application of Big Data and AI into the company’s e-commerce platform is anticipated to have continued helping it deliver enhanced customer experience.
Well-performing Lazada and Trendyol are likely to have aided the performance of Alibaba’s International commerce retail business in the quarter under review.
A solid momentum across members on the alibaba.com platform, coupled with robust cross-border-related value-added services, is expected to have contributed well to the International commerce wholesale business’s growth in the fiscal first quarter.
In addition to the e-commerce business strength, the company’s growing cloud segment is expected to have contributed well to the fiscal first-quarter performance of Alibaba.
Solid momentum across financial services, retail and telecommunication industries is likely to have continued driving its cloud computing revenues in the quarter under review.
However, the company has been spending heavily in new areas of the core online retail business, including supermarkets, stores, new artificial intelligence, digital entertainment and cloud computing businesses. The impacts of the increased expenses are expected to get reflected in Alibaba’s fiscal first-quarter results.
The company’s increasing regulatory concerns are anticipated to have been major headwinds in the to-be-reported quarter.
What Our Model Says
Our proven model conclusively predicts an earnings beat for Alibaba 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. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Alibaba currently has an Earnings ESP of +18.93% and a Zacks Rank #3 (Hold).
Other Stocks to Consider
Here are some other stocks that you may consider, as our model shows that these too have the right combination of elements to beat on earnings this season.
Palo Alto Networks is set to report fourth-quarter fiscal 2022 results on Aug 22. The Zacks Consensus Estimate for PANW’s earnings is pegged at $2.28 per share, suggesting an increase of 42.5% from the prior-year fiscal period’s reported figure.
Keysight Technologies (KEYS - Free Report) has an Earnings ESP of +1.23% and a Zacks Rank of 2 at present.
Keysight Technologies is scheduled to release third-quarter fiscal 2022 results on Aug 17. The Zacks Consensus Estimate for KEYS’ earnings is pegged at $1.79 per share, suggesting an increase of 16.2% from the prior-year fiscal quarter’s reported figure.
Box (BOX - Free Report) has an Earnings ESP of +1.20% and a Zacks Rank #3 at present.
Box is scheduled to release second-quarter 2022 results on Aug 24. The Zacks Consensus Estimate for BOX’s earnings is pegged at 28 cents per share, suggesting an increase of 33.3% from the prior-year quarter’s reported figure.
Image: Bigstock
What's in the Offing for Alibaba (BABA) in Q1 Earnings?
Alibaba Group Holding Limited (BABA - Free Report) is scheduled to report first-quarter fiscal 2023 results on Aug 4.
For the fiscal first quarter, the Zacks Consensus Estimate for earnings is pegged at $1.50 per share, indicating a decline of 41.6% from the prior-year quarter’s reported figure.
The consensus mark for the same is pegged at $31.02 billion, which suggests a decline of 2.7% from the year-ago quarter’s reported figure.
The company’s earnings surpassed the Zacks Consensus Estimate in three of the trailing four quarters, while missing the same once, the average surprise being 9.98%.
Alibaba Group Holding Limited Price and EPS Surprise
Alibaba Group Holding Limited price-eps-surprise | Alibaba Group Holding Limited Quote
Factors to Consider
Alibaba’s strong efforts to add value to consumers and sellers through product enrichment efforts and platform innovations are expected to have driven growth in its e-commerce business in the to-be-reported quarter by driving its customer momentum.
New monetization formats and strengthening online physical goods gross merchandise volume on China retail marketplaces are expected to have aided customer management revenues of the company in the quarter under review.
The growing momentum across paying members on 1688.com is expected to have been a tailwind for the China commerce wholesale business in the fiscal first quarter.
The infusion of advanced technologies, along with increasing validation for Taobao and Tmall portals, is expected to have been beneficial in the quarter to be reported. The application of Big Data and AI into the company’s e-commerce platform is anticipated to have continued helping it deliver enhanced customer experience.
Well-performing Lazada and Trendyol are likely to have aided the performance of Alibaba’s International commerce retail business in the quarter under review.
A solid momentum across members on the alibaba.com platform, coupled with robust cross-border-related value-added services, is expected to have contributed well to the International commerce wholesale business’s growth in the fiscal first quarter.
In addition to the e-commerce business strength, the company’s growing cloud segment is expected to have contributed well to the fiscal first-quarter performance of Alibaba.
Solid momentum across financial services, retail and telecommunication industries is likely to have continued driving its cloud computing revenues in the quarter under review.
However, the company has been spending heavily in new areas of the core online retail business, including supermarkets, stores, new artificial intelligence, digital entertainment and cloud computing businesses. The impacts of the increased expenses are expected to get reflected in Alibaba’s fiscal first-quarter results.
The company’s increasing regulatory concerns are anticipated to have been major headwinds in the to-be-reported quarter.
What Our Model Says
Our proven model conclusively predicts an earnings beat for Alibaba 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. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Alibaba currently has an Earnings ESP of +18.93% and a Zacks Rank #3 (Hold).
Other Stocks to Consider
Here are some other stocks that you may consider, as our model shows that these too have the right combination of elements to beat on earnings this season.
Palo Alto Networks (PANW - Free Report) has an Earnings ESP of +0.47% and a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Palo Alto Networks is set to report fourth-quarter fiscal 2022 results on Aug 22. The Zacks Consensus Estimate for PANW’s earnings is pegged at $2.28 per share, suggesting an increase of 42.5% from the prior-year fiscal period’s reported figure.
Keysight Technologies (KEYS - Free Report) has an Earnings ESP of +1.23% and a Zacks Rank of 2 at present.
Keysight Technologies is scheduled to release third-quarter fiscal 2022 results on Aug 17. The Zacks Consensus Estimate for KEYS’ earnings is pegged at $1.79 per share, suggesting an increase of 16.2% from the prior-year fiscal quarter’s reported figure.
Box (BOX - Free Report) has an Earnings ESP of +1.20% and a Zacks Rank #3 at present.
Box is scheduled to release second-quarter 2022 results on Aug 24. The Zacks Consensus Estimate for BOX’s earnings is pegged at 28 cents per share, suggesting an increase of 33.3% from the prior-year quarter’s reported figure.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.