- PDD’s 3Q adjusted earnings per American depositary receipts (ADS) surpassed estimates, coming in at 11.61 yuan compared to the estimated 8.81 yuan.
- The company’s revenue was also higher than expected, totalling 68.84 billion yuan against the estimated 54.87 billion yuan.
- Revenues from online marketing services and other sources reached 39.69 billion yuan, slightly higher than the estimated 38.85 billion yuan.
- Transaction services revenue significantly exceeded estimates at 29.15 billion yuan, compared to the predicted 16.62 billion yuan.
- Total operating expenses were 25.35 billion yuan, slightly higher than the estimated 24.38 billion yuan.
- Sales and marketing expenses also exceeded estimates, totalling 21.75 billion yuan against an estimated 20.24 billion yuan.
- R&D expenses were lower than estimated, coming in at 2.85 billion yuan compared to an estimate of 3.05 billion yuan.
- VP of Finance at PDD Holdings, Ms. Jun Liu, attributes the company’s financial performance to the early results they have achieved.
- PDD’s shares rose by 2.3% in pre-market trading to $120.40, with 35,735 shares traded.
- Out of 55 analysts, 51 recommended buying PDD’s stock, 4 recommended holding, and none recommended selling.
PDD Holdings on Smartkarma
PDD Holdings Inc. is receiving coverage from several independent analysts on Smartkarma, an independent investment research network. Baptista Research has published a report titled “PDD Holdings Inc.: Breaking the Mold with Tech-Driven Farming Innovations and Skyrocketing Revenues! – Major Drivers”, where the company’s solid result and all-around beat in the quarter was noted. The report noted a 66% year-on-year increase in revenue, signaling a growing trust in its products and services.
Eric Chen has also published a report titled “Pinduoduo (PDD US): Growth Cadence Matters“, where they believe the street still significantly underestimates PDD’s growth outlook for 2H23. They remain bullish on the stock with their price target remaining unchanged. Meanwhile, Oshadhi Kumarasiri published a report titled “Pinduoduo: Short Seller, Grizzly Research Raises Spyware Concerns About TEMU“, which highlighted concerns around the shopping app “TEMU” being accused of being malware/spyware capable of exfiltrating extensive user data without their knowledge. Lastly, Shawn Yang published a report titled “[PDD Holdings (PDD US, BUY, TP US$107)]: Raise TP for GMV, Take Rate, Temu and Kuaituantuan” where they raised their 2H23 forecasts for PDD due to GMV growth, take rate, and new businesses. Eric Chen also published another report titled “Pinduoduo (PDD US): Don’t Fight with PDD“, where they reported blowout 2Q results and expect US$9 billion net profit for FY23 with 25% share price upside.
A look at PDD Holdings Smart Scores
|OVERALL SMART SCORE
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
PDD Holdings Inc. is a multinational commerce group that is set for long-term success. A recent Smartkarma Smart Scores assessment of the company gave PDD Holdings an overall score of 5, indicating a strong outlook for the future. The company scored a perfect 5 in both Growth and Momentum, showing that PDD Holdings is well-positioned to expand and thrive in the digital economy. Additionally, PDD Holdings earned a 5 in Resilience, indicating that the company is well-equipped to handle unexpected challenges. The only two areas where PDD Holdings received a lower score were Value and Dividend, with scores of 2 and 1 respectively. However, with the strong overall outlook, PDD Holdings is well-positioned to continue to grow and thrive in the long-term.
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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