PDD’s Earnings Outlook Offers Mixed Signals After Monthly Share Drop

PDD Holdings shares lost 6.3% over the past month, while the S&P 500 rose 0.6% and the Zacks Internet-Commerce industry fell 4.3%. Zacks consensus estimates for the company show a mixed outlook.

For the current quarter, analysts expect earnings of $2.77 per share, down 6.4% from a year earlier. The consensus estimate rose 2.3% over the past 30 days.

The current fiscal-year earnings estimate is $10.64 per share, up 2.7% from the prior year, but it fell 1.3% over the past month. For the next fiscal year, the estimate is $12.73 per share, up 19.6% from the expected result a year earlier; it edged up 0.2% in the past month.

Sales estimates point to growth. Zacks consensus forecasts revenue of $17.24 billion for the current quarter, up 13.4% year over year. Estimates for the current and next fiscal years are $69.6 billion and $76.42 billion, respectively.

In its last reported quarter, PDD posted revenue of $16.56 billion, up 14.1% year over year, and earnings of $2.85 per share, compared with $3.08 a year earlier. Revenue was 3.35% below the Zacks consensus estimate, while earnings matched the estimate.