Earnings Previews: JD.com, Nu Holdings, Target, TJX, Zim Shipping
Before U.S. markets opened on Monday, JinkoSolar reported earnings per share (EPS) more than double the consensus estimate and revenue that was more than 10% better than the consensus forecast. Revenue was up almost 63% year over year. Gross margins were higher year over year but slipped sequentially. A new stock offering by the company’s principal subsidiary cooled investors’ interest, however. Shares traded down 3.4% shortly after Monday’s opening bell.
Li-Cycle reported revenue well below expectations and a wider net loss than expected. The stock traded down 8.2% on Monday morning.
After markets close Monday or before they open on Tuesday, Canoo, Home Depot, Sea Limited and Tencent Music are on deck to report quarterly results.
Later on Tuesday and early on Wednesday, these five firms will be reporting earnings.
JD.com
Beijing-based JD.com Inc. (NASDAQ: JD) is China’s second-largest e-commerce company. Its shares have dropped by about 36% over the past 12 months, including a decline of 35% so far in 2023. Its earnings report is due first thing Wednesday morning.
Since the government eased restrictions on tech firms like JD.com, Tencent Holdings and Bilibili, analysts have raised their forecasts for earnings and expect the firms to report substantially better results than in the past several quarters. Investors are wary, however, selling off some of their holdings and taking the share price down by more than 5% last Friday.
Of 40 analysts covering the stock, 35 have a Buy or Strong Buy rating. At a recent share price of around $36.50, the stock’s implied upside based on a median price target of $58.75 is 61%. At the high price target of $96.42, the upside potential is 164.2%.
Analysts expect JD.com to report second-quarter revenue of $38.77 billion, which would be up 9.6% sequentially but down 2.9% year over year. Adjusted EPS are expected to come in at $0.69, flat sequentially and up 13.1% year over year. For the full 2023 fiscal year, EPS are forecast at $2.98, up 16.1%, on sales of $151.69 billion, flat year over year.
JD.com stock trades at 12.2 times expected 2023 EPS, 10.4 times estimated 2024 earnings of $3.52, and 8.9 times estimated 2025 earnings of $4.12 per share. Its 52-week trading range is $31.57 to $67.87, and the company pays a dividend of $0.62 (yield of 1.61%). Total shareholder return over the past year is negative 35.04%.
ALSO READ: Tech Giant One of 3 ‘Strong Buy’ Blue Chip Stocks Likely Raising Dividends This Week
Nu Holdings
Brazil-based Nu Holdings Ltd. (NYSE: NU) is a fast-growing fintech player in Brazil and other Latin American countries. The stock has added about 90% to its share price over the past 12 months, virtually all of it in 2023. Warren Buffett’s Berkshire Hathaway owned about 107 million shares in the company as of March. Cathie Wood’s ARK Invest Fintech Innovation ETF owns about 325 million shares.
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