Online platform company Coupang (NYSE: CPNG) will be reporting earnings this Tuesday afternoon. Here’s what to look for.
Coupang missed analysts’ revenue expectations last quarter, reporting revenues of $8.84 billion, up 10.9% year on year. It was a disappointing quarter for the company, with a significant miss of analysts’ revenue estimates and a significant miss of analysts’ EBITDA estimates. It reported 24.6 million active buyers, up 7.9% year on year.
Is Coupang a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting Coupang’s revenue to grow 8.2% year on year, slowing from the 11.2% increase it recorded in the same quarter last year.
Heading into earnings, analysts covering the company have grown increasingly bearish with revenue estimates seeing in majority downward revisions over the last 30 days. Coupang has missed Wall Street’s revenue estimates multiple times over the last two years.
Looking at Coupang’s peers in the online retail segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Amazon delivered year-on-year revenue growth of 16.6%, beating analysts’ expectations by 2.4%, and Carvana reported revenues up 52%, topping estimates by 6%. Amazon’s stock price was unchanged after the resultsand Carvana’s price followed a similar reaction.
Read our full analysis of Amazon’s results here and Carvana’s results here.
There has been positive sentiment among investors in the online retail segment, with share prices up 11.1% on average over the last month. Coupang is up 5.3% during the same time and is heading into earnings with an average analyst price target of $27.74 (compared to the current share price of $20.55).
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