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Pinduoduo (PDD) to Report Q3 Earnings: What's in Store?

Pinduoduo Inc. PDD is scheduled to report third-quarter 2021 results on Nov 26.

For the third quarter, the Zacks Consensus Estimate for sales is pegged at $4.31 billion, indicating a jump from $2.09 billion reported in the prior-year quarter.

The consensus mark for earnings per share stands at 2 cents, whereas Pinduoduo reported a loss of 10 cents in the year-ago quarter.

Pinduoduo’s earnings surpassed the Zacks Consensus Estimate in three of the trailing four quarters and missed the same once, the average surprise being 119.32%.

Pinduoduo Inc. Sponsored ADR Price and EPS Surprise

Pinduoduo Inc. Sponsored ADR Price and EPS Surprise

Pinduoduo Inc. Sponsored ADR price-eps-surprise | Pinduoduo Inc. Sponsored ADR Quote

Factors to Note

Pinduoduo’s strength across the e-commerce business is likely to have contributed significantly to its third-quarter performance.

A strong momentum across its online marketing services and growing merchandise sales are expected to have continued driving top-line growth in the quarter under review.

Additionally, an improving scenario in the agriculture sector is expected to have remained a major tailwind during the to-be-reported quarter.

A growing momentum across PDD’s Duo Duo Grocery service is likely to have contributed well.

Pinduoduo’s strengthening efforts toward integrating online traffic with offline retail experiences are likely to have benefited the third-quarter results.

Increasing advertising demand from merchants on PDD’s platform is anticipated to have continued benefiting its performance in the quarter under review.

However, accelerating costs related to the coronavirus pandemic are anticipated to have negatively impacted the margin expansion in the to-be-reported quarter.

Moreover, increasing payment processing fees, and higher costs for cloud services and expenses associated with online marketing services, are expected to have been concerning.

What Our Model Says

Our proven model doesn’t conclusively predict an earnings beat for Pinduoduo 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.

Pinduoduo currently has an Earnings ESP of 0.00% and a Zacks Rank #3.

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.

Bank of Montreal BMO has an Earnings ESP of +0.51% and a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Bank of Montreal is scheduled to release fourth-quarter fiscal 2021 results on Dec 3. The Zacks Consensus Estimate for BMO’s earnings is pegged at $2.47 per share, which suggests an increase of 36.5% from the prior-year reported figure.

Costco Wholesale COST has an Earnings ESP of +1.00% and a Zacks Rank of 3 at present.

Costco is scheduled to release first-quarter fiscal 2022 results on Dec 9. The Zacks Consensus Estimate for COST’s earnings is pegged at $2.59 per share, suggesting an increase of 13.1% from the prior-year reported figure.

Bank of Nova Scotia BNS has an Earnings ESP of +1.48% and is Zacks #3 Ranked at present.

Bank of Nova Scotia is set to report fourth-quarter fiscal 2021 results on Nov 30. The Zacks Consensus Estimate for BNS’ earnings is pegged at $1.52 per share, which suggests an increase of 38.2% from the prior-year reported figure.


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Pinduoduo Inc. Sponsored ADR (PDD): Free Stock Analysis Report

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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