What is the outlook for Alibaba (BABA) in first quarter results?

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Alibaba Group Holding Limited BABA is expected to release its results for the first quarter of fiscal 2022 on August 3.

For the fiscal first quarter, Zacks’ consensus estimate for earnings is set at $ 2.18 per share, which indicates growth of 3.8% over the reported figure for the previous year’s quarter.

The consensus mark for the same is set at $ 32.7 billion, which suggests growth of 50.1% from the figure released a year ago.

Company profits have beaten Zacks’ consensus estimate in three of the past four quarters, while missing the same once, with the average surprise being 7.53%.

Alibaba Group Holding Limited Price and EPS Surprise

Alibaba Group Holding Limited price-eps-surprise | Limited Quote from Alibaba Group Holding

Factors to consider

Alibaba’s massive efforts to add value to consumers and sellers through product enrichment efforts and platform innovations are expected to have boosted growth in its e-commerce business in the quarter to be released. by stimulating the dynamics of its customers.

New monetization formats and the strengthening of online physical goods GMV in Chinese retail markets are expected to have contributed to the company’s customer management revenues in the quarter under review.

The growing momentum of paying members on 1688.com is expected to have been a positive wind for wholesale business in China in the first fiscal quarter.

The infusion of advanced technologies as well as the increasing validation of the Taobao and Tmall portals should have been beneficial during the reporting quarter. Applying big data and AI to the company’s e-commerce platform should continue to help it deliver an improved customer experience.

The strong performance of Lazada and Trendyol likely contributed to the performance of Alibaba’s international trade retail operations in the quarter under review.

Strong momentum among members on the alibaba.com platform, coupled with strong cross-border value-added services, is expected to have contributed well to the growth of international trade wholesale in the first fiscal quarter.

In addition to the strength of the e-commerce business, the company’s growing cloud segment is expected to have contributed well to Alibaba’s fiscal performance in the first quarter.

However, we note that the company has spent heavily in new areas of its core online retail business, including supermarkets, stores, new artificial intelligence, digital entertainment and cloud computing businesses. The impacts of this increased spending are expected to be reflected in Alibaba’s first quarter tax results.

The company’s growing regulatory concerns are expected to have been a major headwind in the reportable quarter.

What our model says

Our proven model does not conclusively predict an increase in profits for Alibaba this time around. The combination of a positive earnings ESP and a Zacks # 1 (strong buy), 2 (buy), or 3 (hold) ranking increases the odds of beating the winnings. But it is not the case here. You can discover the best stocks to buy or sell before they are flagged with our ESP Earnings Filter.

Alibaba currently has an ESP on earnings of -1.20% and a rank 4 of Zacks.

Actions to consider

Here are some stocks that you can also consider as our model shows they have the right mix of elements to beat profits this season.

Agilent Technologies A has a +1.49% earning ESP and a Zacks # 2 rank currently.

Avnet AVT has an earnings ESP of + 9.82% and he currently sports a Zacks rank of 1.

CyberArk Software CYBR has an Income ESP of + 37.93% and a Zacks Rank of 2 right now. You can see The full list of today’s Zacks # 1 Rank stocks here.

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