PDD Holdings Inc. Sponsored ADR (PDD) Lags Q1 Earnings and Revenue Estimates

Company Performance - PDD Holdings Inc. reported quarterly earnings of $1.56 per share, missing the Zacks Consensus Estimate of $2.49 per share, and down from $2.83 per share a year ago, representing an earnings surprise of -37.35% [1] - The company posted revenues of $13.18 billion for the quarter ended March 2025, missing the Zacks Consensus Estimate by 6.93%, compared to $12.02 billion in the same quarter last year [2] - Over the last four quarters, the company has surpassed consensus EPS estimates two times but has not beaten consensus revenue estimates [2] Stock Performance - PDD Holdings Inc. shares have increased by approximately 22.9% since the beginning of the year, while the S&P 500 has declined by -1.3% [3] - The current consensus EPS estimate for the upcoming quarter is $2.85 on revenues of $15.62 billion, and for the current fiscal year, it is $11.99 on revenues of $64.94 billion [7] Industry Outlook - The Internet - Commerce industry, to which PDD Holdings belongs, is currently ranked in the top 26% of over 250 Zacks industries, indicating a favorable outlook [8] - Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can impact stock performance [5][6]