Updated Aug 6 at 2:27pm ET.
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The company is scheduled to share its latest financial results before the market opens on August 13. Analysts are looking for earnings of about $0.86 per share. This report will be a key test of whether the company's focus on low prices is successfully winning over more shoppers in a tough Chinese consumer market.
Beyond the headline numbers, we are watching for updates on the logistics business. The company's ability to sell its delivery and warehouse services to outside merchants is a major part of its plan to protect its profit margins while it cuts prices for retail customers.
European regulators have sent a formal list of objections to the company regarding its plan to buy Ceconomy, a major German electronics seller. The investigation is focused on whether the deal involves unfair subsidies, which are financial helps from a government that might give a company an unfair advantage over its rivals.
While this deal would help the company expand its footprint outside of China, the regulatory pushback creates a hurdle. If the European Commission blocks the deal or demands major changes, it could slow down the company's efforts to grow its international retail and logistics network.
Source: Reuters
Analysts have recently slowed their activity, with only a few scattered updates following a busy spring period of price target adjustments. Most analysts remain positive, with 32 of 46 rating the stock a buy and an average target of $34.
Management has a perfect record of clearing the bars set by analysts, often by a wide margin. This suggests they are conservative with their forecasts and the business is performing reliably.
| Expectation | |
|---|---|
| EPS | $0.86 |
| Revenue | $50.51B |
