Chinese e-tailer JD.com (JD) is set to announce its Q3 2024 results today. Wall Street analysts expect the company to report earnings of $1.05 per share for Q3, up 13% from $0.75 in the year-ago quarter. Meanwhile, analysts expect revenues of $36.05 billion, up about 6% year-over-year, according to data from the TipRanks Forecast page.
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Interestingly, JD has an encouraging earnings surprise history. The company exceeded earnings estimates in all the previous nine quarters.
Encouraging Website Traffic Trend
Along with encouraging analysts’ estimates, JD.com’s website traffic data also suggests strong results for the company in Q3. It should be noted that investors can use TipRanks’ Website Traffic Tool to gain insights into a company’s upcoming earnings report. The tool offers information on how a company’s website domain performed over a specific time frame.
For JD, TipRanks’ website traffic screener reveals that the number of visits to jd.com increased 238.46% from the year-ago quarter, suggesting strong top-line performance for Q3.
Insights from TipRanks’ Bulls & Bears Tool
According to TipRanks’ Bulls Say, Bears Say tool, bullish analysts are optimistic about JD’s strong earnings visibility in Q3. They expect the company’s category sales to improve, supported by a government subsidy program for home appliance trade-ins. Also, JD’s new share repurchase program is seen as a positive factor, enhancing its valuation and providing shareholder value.
On the other hand, bears express concerns about JD’s financial performance, particularly due to a decline in electronic product sales. Analysts also highlight the potential for market share loss as competitors increase subsidies and promotions.
Options Traders Anticipate a Large Move
Using TipRanks’ Options tool, we can see what options traders are expecting from the stock immediately after its earnings report. The expected earnings move is determined by calculating the at-the-money straddle of the options closest to expiration after the earnings announcement. If this sounds complicated, don’t worry, the Options tool does this for you.
Indeed, it currently says that options traders are expecting a 8.91% move in either direction.
Is JD a Buy, Sell, or Hold?
Turning to Wall Street, analysts have a Strong Buy consensus rating on JD stock based on 13 Buys and two Holds assigned in the past three months, as indicated by the graphic below. After a 44% gain in its share price over the past year, the analysts’ average price target on JD stock of $47.77 implies an upside potential of 33.85%.
