E-commerce stocks’ third-quarter releases are expected to reflect the impacts of the coronavirus pandemic-led spike in online shopping.
The resurgence of coronavirus cases, and increasing health risks and deaths related to COVID-19 during the quarter under review, which made people apprehensive, led to further growth in the adoption rate of e-commerce.
Shopping of grocery items, medicines and other essentials online is likely to have remained a major tailwind.
Additionally, social-distancing protocol and stay-at-home restriction-induced rising demand for door-to-door delivery of essentials resulting in rising online orders worldwide are expected to have continued benefiting the e-commerce companies in the third quarter.
Moreover, the growing proliferation of fast delivery services being offered by online retailers for non-essential items is likely to have bolstered their growth further during the quarter under review.
Impressive third-quarter 2020
results
posted by e-commerce giant Amazon
AMZN
is a testament to these facts. The company’s online store sales increased 38% from the year-ago quarter. Further, strengthening momentum across online grocery shopping contributed well to its performance.
Further, eBay
EBAY
reported strong third-quarter
results
on the back of solid Marketplace growth and accelerating gross merchandise volume.
Etsy also delivered solid third-quarter
results
on the heels of the coronavirus outbreak-induced e-commerce boom, which led to a surge in its Marketplace revenues, mask sales and number of new buyers.
However, the e-commerce industry is expected to have continued witnessing headwinds in the travel space due to restrictions and fear related to the coronavirus outbreak. This might have remained a major concern for the industry if we keep aside the retail benefits.
Sneak Peek on Few Upcoming Releases
Let’s see what’s in the offing for four e-companies that are scheduled to report third-quarter 2020 results on Nov 4.
MercadoLibre
MELI
is likely to have benefited from strength across online-to-offline offerings. Further, increasing traffic and engagement rate by buyers on the company’s online retail platform is likely to have contributed well to top-line growth in the to-be-reported quarter.
Additionally, solid momentum across the free shipment program is expected tohave remained a tailwind. Also, strong mobile-point-of-sale business and the growing adoption of MercadoPago are expected to have benefited the company’s performance in the quarter under review. (Read more:
What’s in the Cards for MercadoLibre in Q3 Earnings?
)
The Zacks Consensus Estimate for third-quarter earnings has been stable at 8 cents per share over the past seven days.
Our proven model conclusively predicts an earnings beat for MercadoLibre this time around. The combination of a positive
Earnings ESP
and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat.
Notably, MercadoLibre has an Earnings ESP of +269.05% and it sports a Zacks Rank #1. You can see
the complete list of today’s Zacks #1 Rank stocks here
.
MercadoLibre, Inc. Price and EPS Surprise
MercadoLibre, Inc. price-eps-surprise
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MercadoLibre, Inc. Quote
Match Group
’s
MTCH
third-quarter performance is expected to have benefited from its deepening focus on video-dating services. Moreover, increasing user engagement across all brands,especially among youngsters during the pandemic scenario, is likely to have contributed well. Further, solid momentum across Tinder, Hinge, Pairs and OkCupid is likely to have driven top-line growth in the quarter under review.
However, the impacts of heightened competition from other players are expected to get reflected in the company’s to-be-reported results.
The Zacks Consensus Estimate for third-quarter earnings has been stable at 57 cents per share over the past seven days.
Notably, Match Group has an Earnings ESP of 0.00% and a Zacks Rank #3. You can uncover the best stocks to buy or sell before they’re reported with our
Earnings ESP Filter
.
Match Group Inc. Price and EPS Surprise
Match Group Inc. price-eps-surprise
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Match Group Inc. Quote
Qurate Retail
’s
QRTEA
third-quarter performance is expected to have benefited from strength across the e-commerce business. Further, strong momentum across QVC International is likely to have bolstered the company’s customer base growth in the quarter under review. Additionally, a strong push toward product freshness and programming diversity is expected to have aided the performance of QVC U.S. in the to-be-reported quarter. Furthermore, extending video reach across several video platforms is anticipated to have remained a tailwind.
The Zacks Consensus Estimate for third-quarter earnings has been stable at 43 cents per share over the past seven days.
Notably, Qurate Retail has an Earnings ESP of 0.00% and a Zacks Rank #3.
Qurate Retail Group, Inc. Price and EPS Surprise
Qurate Retail Group, Inc. price-eps-surprise
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Qurate Retail Group, Inc. Quote
Expedia Group
EXPE
is expected to have benefited from moderations in the cancellation of bookings, owing to the gradual reopening of the economy in the quarter under review. Further, cost-saving initiatives are likely to have helped the company in countering the coronavirus-induced disruptions. Further, strength across the global lodging portfolio is expected to have remained a tailwind.
However, sluggishness in the global travel industry, owing to the pandemic,is expected to have weighed heavily on Expedia’s third-quarter performance. (Read more:
Expedia Group to Post Q3 Earnings: What’s in Store?
)
The Zacks Consensus Estimate for third-quarter loss has been stable at 89 cents per share over the past seven days.
Notably, Expedia has an Earnings ESP of -128.09% and a Zacks Rank #4 (Sell).
Expedia Group, Inc. Price and EPS Surprise
Expedia Group, Inc. price-eps-surprise
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Expedia Group, Inc. Quote
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