- Adjusted earnings per American depositary share stood at 22.07 yuan, surpassing the estimate of 15.50 yuan.
- Total revenue amounted to 103.98 billion yuan, slightly above the estimated 103.93 billion yuan.
- Revenue from online marketing services and others reached 55.70 billion yuan, exceeding the forecast of 54.94 billion yuan.
- Transaction services revenue was reported at 48.28 billion yuan, slightly below the estimated 48.91 billion yuan.
- Adjusted net income hit 32.71 billion yuan, significantly exceeding the estimate of 22.39 billion yuan.
- Total operating expenses were 32.33 billion yuan, much lower than the expected 40.66 billion yuan.
- General and administrative expenses were 1.53 billion yuan, undercutting the estimate of 1.91 billion yuan.
- Research and Development expenses totaled 3.59 billion yuan, slightly above the estimate of 3.5 billion yuan.
- Earnings per American depositary share were 20.75 yuan, outperforming the estimate of 14.18 yuan.
- Net cash from operating activities came to 21.64 billion yuan.
- Shares increased by 2.2% in pre-market trading, reaching $129.89, with 189,529 shares traded.
- The stock witnessed 44 buy ratings, 14 hold ratings, and 2 sell ratings.
PDD Holdings on Smartkarma
Analyst coverage of PDD Holdings on Smartkarma reveals diverse views on the company’s performance. Daniel Hellberg‘s bearish perspective highlights a profit decline in Q125 before US tariff changes, indicating challenging conditions for platforms like Temu and SHEIN in the US. Conversely, Ming Lu‘s bullish stance suggests that despite a stock price drop post-1Q25 results, PDD maintains a balance between revenue growth and operating cash flow, distinguishing it from competitors benefiting from state subsidies.
On the other hand, Steven Holden‘s bearish outlook points to a record ownership decline in Pinduoduo, with significant selling and closures in active GEM funds. Additionally, the possibility of Chinese ADRs, including PDD Holdings, facing delisting from US exchanges, as discussed by Brian Freitas, adds a layer of uncertainty to the company’s future amidst escalating tariff tensions.
A look at PDD Holdings Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 2 | |
| Dividend | 1 | |
| Growth | 5 | |
| Resilience | 5 | |
| Momentum | 4 | |
| OVERALL SMART SCORE | 3.4 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Based on the Smartkarma Smart Scores, PDD Holdings Inc. shows a promising long-term outlook. With a strong emphasis on growth and resilience, the company is positioned well to capitalize on emerging opportunities in the digital economy. PDD Holdings‘ commitment to fostering productivity and creating new avenues for local communities and small businesses highlights its dedication to sustainable expansion.
Although PDD Holdings may not rank as high in terms of value and dividend offerings, its top scores in growth and resilience, coupled with a solid momentum score, indicate a dynamic and competitive presence in the market. By leveraging its network of sourcing, logistics, and fulfillment capabilities, PDD Holdings is poised to navigate challenges and drive sustainable growth in the evolving digital landscape.
Summary: PDD Holdings Inc. is a multinational commerce group focused on the digital economy, with a portfolio of businesses aimed at enhancing productivity and creating opportunities for local communities and small businesses. The company’s strengths lie in growth, resilience, and momentum, positioning it well for long-term success in the market.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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