Earnings Preview For Coupang

Coupang CPNG is set to give its latest quarterly earnings report on Tuesday, 2024-11-05. Here's what investors need to know before the announcement.

Analysts estimate that Coupang will report an earnings per share (EPS) of $0.01.

The announcement from Coupang is eagerly anticipated, with investors seeking news of surpassing estimates and favorable guidance for the next quarter.

It's worth noting for new investors that guidance can be a key determinant of stock price movements.

Historical Earnings Performance

The company's EPS beat by $0.06 in the last quarter, leading to a 2.61% increase in the share price on the following day.

Here's a look at Coupang's past performance and the resulting price change:

Market Performance of Coupang's Stock

Shares of Coupang were trading at $25.4 as of November 01. Over the last 52-week period, shares are up 48.65%. Given that these returns are generally positive, long-term shareholders are likely bullish going into this earnings release.

Analyst Observations about Coupang

Understanding market sentiments and expectations within the industry is crucial for investors. This analysis delves into the latest insights on Coupang.

Analysts have given Coupang a total of 2 ratings, with the consensus rating being Outperform. The average one-year price target is $30.5, indicating a potential 20.08% upside.

Understanding Analyst Ratings Among Peers

The analysis below examines the analyst ratings and average 1-year price targets of and eBay, three significant industry players, providing valuable insights into their relative performance expectations and market positioning.

• eBay received a Neutral consensus from analysts, with an average 1-year price target of $64.48, implying a potential 153.86% upside.

Overview of Peer Analysis

The peer analysis summary outlines pivotal metrics for and eBay, demonstrating their respective standings within the industry and offering valuable insights into their market positions and comparative performance.

Key Takeaway:

Coupang outperforms its peers in revenue growth with a rate of 25.44%, while its gross profit is at $2.14B, higher than its peers. However, Coupang's return on equity is at -1.94%, which is lower compared to its peers.

Unveiling the Story Behind Coupang

Coupang Inc is an e-commerce company. It sells apparel, electronics, footwear, food products, furniture, nutritional supplements, and other products. Its segments include Product Commerce and Developing Offerings. The company generates maximum revenue from the Product Commerce segment. Product Commerce includes core retail (owned inventory) and marketplace offerings (third-party merchants) and Rocket Fresh, fresh grocery offering, as well as advertising products associated with these offerings.

Understanding the Numbers: Coupang's Finances

Market Capitalization Analysis: Below industry benchmarks, the company's market capitalization reflects a smaller scale relative to peers. This could be attributed to factors such as growth expectations or operational capacity.

Positive Revenue Trend: Examining Coupang's financials over 3 months reveals a positive narrative. The company achieved a noteworthy revenue growth rate of 25.44% as of 30 June, 2024, showcasing a substantial increase in top-line earnings. As compared to its peers, the company achieved a growth rate higher than the average among peers in Consumer Discretionary sector.

Net Margin: Coupang's financial strength is reflected in its exceptional net margin, which exceeds industry averages. With a remarkable net margin of -1.05%, the company showcases strong profitability and effective cost management.

Return on Equity (ROE): Coupang's ROE lags behind industry averages, suggesting challenges in maximizing returns on equity capital. With an ROE of -1.94%, the company may face hurdles in achieving optimal financial performance.

Return on Assets (ROA): Coupang's ROA is below industry standards, pointing towards difficulties in efficiently utilizing assets. With an ROA of -0.51%, the company may encounter challenges in delivering satisfactory returns from its assets.

Debt Management: Coupang's debt-to-equity ratio is below industry norms, indicating a sound financial structure with a ratio of 0.96.

To track all earnings releases for Coupang visit their earnings calendar on our site.

This article was generated by Benzinga's automated content engine and reviewed by an editor.