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

JD.com, Inc. JD is slated to report fourth-quarter 2023 results on Mar 6.

For the fourth quarter, the Zacks Consensus Estimate for revenues is pegged at $42.56 billion, indicating a decline of 0.6% from the year-ago quarter's reported figure.

The consensus mark for earnings is pegged at 65 cents per share, suggesting a 7.1% decrease from the prior-year quarter's number.

JD.com surpassed the Zacks Consensus Estimate in all the trailing four quarters, delivering an earnings surprise of 14.5% on average.

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.

JD.com's strong relationships with high-end brands may have contributed well. Moreover, the increasing number of flagship stores on JD's platform is likely to have benefited the segment. GUCCI and DE BEERS on JD.com are expected to have continued to benefit JD Retail's fourth-quarter performance.

Also, JD partnered with French luxury fashion group SMCP, whose brands like SANDRO, MAJE, and CLAUDIE PIERLOT opened flagship stores on JD's platform.

Strengthening omnichannel offerings of JD are also expected to get reflected in its quarterly results.

This apart, growing momentum across the company's Dada segment on the back of strength across its on-demand retail services is likely to have aided it in attracting various retailers and brand owners to its on-demand retail platform.

In addition to retail efforts, 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 expected to get reflected in the company's to-be-reported quarter's results. Moreover, the growing digital capabilities of JD Health are likely to have contributed well.

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

The company's expanding quick delivery services in the lower-tier cities are likely to have aided it in gaining traction in these cities in the fourth quarter. The strengthening of the logistics network in these cities is anticipated to have contributed to the quarter's performance.

However, softness in the new businesses segment is expected to have negatively impacted top-line growth during the quarter under review.

JD's mounting fulfillment expenses, including procurement, warehousing, delivery, customer service and payment processing expenses, are likely to have weighed on its fourth-quarter performance.

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.

JD.com has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter.

Currently, JD carries a Zacks Rank #3.

Stocks to Consider

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

The Gap GPS has an Earnings ESP of +54.71% and sports a Zacks Rank #1 at present. You can see the complete list of today's Zacks #1 Rank stocks here.

The Gap is set to announce fourth-quarter 2023 results on Mar 7. The Zacks Consensus Estimate for GPS' earnings is pinned at 19 cents per share, indicating growth from the year-ago quarter's reported loss of 75 cents per share.

Burlington Stores BURL has an Earnings ESP of +1.83% and a Zacks Rank of 3 at present.
 
The company is set to announce fourth-quarter 2023 results on Mar 7. The Zacks Consensus Estimate for BURL's earnings is pinned at $3.25 per share, indicating growth of 9.8% from the year-ago quarter's reported figure.

Costco Wholesale COST has an Earnings ESP of +1.58% and a Zacks Rank #2 at present.

Costco is scheduled to release second-quarter fiscal 2024 results on Mar 7. The Zacks Consensus Estimate for COST's earnings is pegged at $3.60 per share, suggesting a growth of 9.1% from the prior-year quarter's reported figure.
 

To read this article on Zacks.com click here.