China's Dingdong Q4 revenue rises on order growth

Reuters03-04
China's Dingdong Q4 revenue rises on order growth

Overview

  • China grocery e-commerce firm's Q4 revenue grew 5.7% yr/yr

  • Net income for Q4 decreased compared to last year

  • Company announced in feb, to sell China business to Meituan, use proceeds for buybacks

Outlook

  • Dingdong did not provide specific future financial guidance in its press release

Result Drivers

  • ORDER GROWTH - Revenue growth driven by increased number of orders, higher user transactions, and order frequency

  • B2B EXPANSION - B2B revenue, particularly from overseas operations, showed strong growth

  • CPI IMPACT - Revenue growth partially offset by price declines in major categories like pork

Company press release: ID:nPn9YfKf4a

Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q4 Revenue

RMB 6.24 bln

Q4 EPS

RMB 0.09

Q4 Adjusted Net Income

RMB 50.8 mln

Q4 Net Income

RMB 33.6 mln

Q4 Operating Income

RMB 12 mln

Analyst Coverage

  • The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 3 "strong buy" or "buy", 1 "hold" and 1 "sell" or "strong sell"

  • The average consensus recommendation for the online services peer group is "buy"

  • Wall Street's median 12-month price target for Dingdong (Cayman) Ltd is $2.50, about 9.1% below its March 3 closing price of $2.75

  • The stock recently traded at 9 times the next 12-month earnings vs. a P/E of 6 three months ago

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)

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