Overview

• China grocery e-commerce firm's Q4 revenue grew 5.7% yr/yr

• Net income for Q4 decreased compared to last year

• Company announced in feb, to sell China business to Meituan, use proceeds for buybacks

Outlook

• Dingdong did not provide specific future financial guidance in its press release

Result Drivers

• ORDER GROWTH - Revenue growth driven by increased number of orders, higher user transactions, and order frequency

• B2B EXPANSION - B2B revenue, particularly from overseas operations, showed strong growth

• CPI IMPACT - Revenue growth partially offset by price declines in major categories like pork

Company press release: ID:nPn9YfKf4a

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 3 "strong buy" or "buy", 1 "hold" and 1 "sell" or "strong sell"

• The average consensus recommendation for the online services peer group is "buy"

• Wall Street's median 12-month price target for Dingdong (Cayman) Ltd is $2.50, about 9.1% below its March 3 closing price of $2.75

• The stock recently traded at 9 times the next 12-month earnings vs. a P/E of 6 three months ago

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)