S&P 500 Earnings Preview – J.D.com Should Beat Downwardly Revised Earnings Estimates

JD.Com

JD.com (JD) is slated to issue Q1 results on May 15 before the opening bell. JD.com operates as an e-commerce company and retail infrastructure service provider. For the first quarter of 2020, the company expects net revenues to improve 10% on a year-over-year basis. The company is expected to earn $0.11 per share on $19.29 billion in revenue. This compares to $0.06 in the latest quarter. Estimated earnings per share have tumbled over the last thirty days down from $0.85 per share down to $0.11 per share. Over the last 7-days, ESP has declined from $0.81 per share.

Despite the downward trend in earnings results due to the impact of the coronavirus, JD.com should see a pickup in revenues as China’s economy comes back to life. The stock price is hovering near 2-year highs an is poised to test higher levels.

V.F. Corporation

V.F. Corporation (VFC) is scheduled to release its Q1 financial results before the opening bell on Friday. The company has several lines of business including design, production, procurement, marketing, and distribution of branded lifestyle apparel and footwear. V.F. Corp is expected to earn $0.13 per share on $2.31 billion in revenue. This compares to $1.21 per share in the prior quarter. The trend in earnings estimates has been downward sloping falling from $0.34 per share 30-days ago to $0.13 per share. Growth estimates are showing a decline of 77%.

Apparel and footwear are non-essential businesses that felt the pinch of the global lockdown and will not likely experience a rebound for some time. The stock prices have dropped 45% since hitting a high near $100 in January of 2020 and experienced very little upward momentum in April and May.