PDD Holdings is scheduled to report results for the third quarter on Thursday. Here is what you need to know:
NET PROFIT: The Chinese e-commerce giant is likely to post net profit of 26.75 billion yuan, equivalent to $3.69 billion, according to the consensus estimate of eight analysts in a FactSet poll, a significant increase from 15.54 billion yuan a year earlier.
REVENUE: Revenue is expected at 102.43 billion yuan, according to FactSet, up sharply from 68.84 billion yuan a year ago.
U.S.-listed PDD rose just 1.4% in July to September amid volatile trading. The company's American depositary receipts fell by a record 28.5% in a single day in August after it posted weaker-than-expected revenue growth for the second quarter and warned of challenges ahead. Its ADRs resumed their decline in recent weeks, taking losses so far this year to 20%.
WHAT TO WATCH:
--TEMU: The bargain app faces various headwinds despite robust growth since first launching in the U.S. in 2022, analysts said. There is uncertainty over potential tariff changes and greater pushback from more countries related to its low prices, Citi analysts led by Alicia Yap said in a research note. Haitong International analysts also identified geopolitical risk as a key factor for PDD's stock price, though they said in a note that it is unclear at this stage how Donald Trump's tariff policy will affect the company's international business.
--REVENUE: Most investors would agree that PDD's management has strong execution and that its domestic gross merchandise value and revenue growth will still outperform peers despite intense competition, Citi said. Bocom International analysts said in a note that PDD, which runs Pinduoduo in China, likely delivered GMV growth of 15% to 20% in its home market for the third quarter.
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