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JD.com (JD) to Report Q2 Earnings: What's in the Offing?

JD.com, Inc. JD is slated to report second-quarter 2020 results on Aug 17.

The company expects second-quarter net revenues between RMB 180 billion and RMB 195 billion, suggesting growth of 20-30% from the prior-year quarter.

The Zacks Consensus Estimate for revenuesis pegged at $27.2 billion, indicating an improvement of 24.2% from the year-ago reported figure.

Moreover, the consensus mark for earnings is pegged at 39 cents per share, suggesting growth of 18.2% from the prior-year quarter. Further, the figure has been revised upward by 2.6% over the past 30 days.

JD.com, Inc. Price and EPS Surprise

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

JD.com’s strong efforts toward offering services at best price on the back of its scale and lowerprocurement costs from suppliers are expected to have benefited the second-quarter performance.

Moreover, its deepening focus toward ensuring supply and fulfillment of essential products to customers during the ongoing pandemic situation might have contributed significantly to the to-be-reported quarter’s results.

Further, the company’s JD Retail segment that comprises e-commerce businessis expected to have performed well in the quarter to be reported courtesy of boom in the online retail market as a result of coronavirus induced shelter-in-place restrictions.

Additionally, strengthening momentum across lower-tier cities may have driven revenue growth in the JD Retail segment.

Strengthening omnichannel offerings of the company are also expected to get reflected in JD Retail’s second-quarter revenues. The new experience store namely JD E-SPACE and new omnichannel store formats— 7FRESH LIFE and SEVEN FUN might have benefited the to-be-reported quarter’s performance.

The company’s strengthening brand recognition and consumer perception are likely to have driven its general merchandized sales in the second quarter.

The second-quarter results are also likely to reflect robust supermarket business and expanding JD Logistics.

Additionally, JD’s growing momentum across New Businesses segment, which comprises logistics services, technology services and overseas businesses, might have contributed to the to-be-reported quarter’s performance.

However, rising competitive pressure in the e-commerce market from Alibaba BABA and other players may have weighed on the second-quarter performance.

What Our Model Says

Our proven model conclusively predictsan 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 +13.79% and a Zacks Rank #2.

Other Stocks to Consider

Here are someother stocks you may consider, as our proven model shows that thesetoo have the right combination of elements to post an earnings beat this quarter.

Agilent Technologies, Inc. A has an Earnings ESP of +5.00% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Home Depot, Inc. HD has an Earnings ESP of +17.13% and a Zacks Rank #3.

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