Temu Parent PDD's Stock Soars After Profit Jumps Well Above Expectations, As Consumer Sentiment Improves -- MarketWatch

Dow Jones03-20

The U.S.-listed shares of PDD Holdings Inc. $(PDD)$ powered up 10.7% in premarket trading Wednesday, after the China-based e-commerce company and parent of fast-fashion platform Temu reported fourth-quarter earnings that rose well above expectations, citing "growing demand driven by encouraging consumer sentiment." Net income jumped to RMB23.28 billion ($3.28 billion), or RMB15.83 a share, from RMB9.45 billion, or RMB6.52 a share, in the same period a year ago. Excluding nonrecurring items, adjusted earnings per share of RMB17.32 beat the FactSet consensus of RMB11.28. Revenue climbed 123% to RMB88.88 billion ($12.52 billion), above the FactSet consensus of RMB79.53 billion, with the increase due primarily to a rise in revenue from online marketing and transactions services. PDD's stock has dropped 12.7% year to date through Tuesday, while the iShares MSCI China ETF $(MCHI)$ has slipped 1.7% and the S&P 500 has gained 8.6%.

-Tomi Kilgore

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March 20, 2024 06:40 ET (10:40 GMT)

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