By Tracy Qu
PDD Holdings is scheduled to report its first-quarter results on Tuesday. Here is what you need to know:
NET PROFIT: The Chinese e-commerce giant's net profit was likely 26.125 billion yuan, equivalent to $3.64 billion, according to the consensus estimate of eight analysts polled by FactSet. That would compare with 28.00 billion yuan in the year-earlier period.
REVENUE: Quarterly revenue is expected at 104.41 billion yuan, according to FactSet, up from 86.81 billion yuan a year ago.
U.S.-listed PDD rose 22% in the first quarter of 2025 as Chinese technology stocks broadly advanced on optimism surrounding China's artificial-intelligence breakthrough and signs of Beijing's more favorable attitude toward private enterprises.
WHAT TO WATCH:
--TARIFFS: Investors will watch for management comments regarding PDD's overseas platform, Temu, which is likely to face challenges amid tariff uncertainties. While not unexpected, "this is still a major setback to the company's global expansion ambition," Citi analysts said in a commentary. "With more countries likely to scrutinize [imports] of small parcels, Temu could face more sales headwinds in coming months."
--SALES GROWTH: PDD's revenue growth, which has slowed in recent quarters, will also be in focus. Citi has trimmed its 2025 and 2026 revenue forecasts by 0.6% and 2.3%, respectively, citing scaled-back sales and marketing in the U.S. and the company's continuing shift toward a semi-managed model that offers cost efficiency, helping it cope with new tariff rules. Meanwhile, PDD's revenue from its domestic business could be affected by initiatives to step up merchant support, it said.
Write to Tracy Qu at tracy.qu@wsj.com
(END) Dow Jones Newswires
May 26, 2025 23:51 ET (03:51 GMT)
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