Online platform company Coupang (NYSE: CPNG) will be reporting results this Tuesday after market hours. Here’s what you need to know.
Coupang missed analysts’ revenue expectations last quarter, reporting revenues of $8.50 billion, up 7.5% year on year. It was a satisfactory quarter for the company, with an impressive beat of analysts’ EBITDA estimates. It reported 23.9 million active buyers, up 2.1% year on year.
Is Coupang a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting Coupang’s revenue to grow 6.2% year on year, slowing from the 16.4% increase it recorded in the same quarter last year.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. Coupang has missed Wall Street’s revenue estimates multiple times over the last two years.
Looking at Coupang’s peers in the consumer internet segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Amazon delivered year-on-year revenue growth of 19.6%, beating analysts’ expectations by 2%, and Carvana reported revenues up 52.4%, topping estimates by 7.7%. Amazon traded up 15.4% following the results while Carvana was down 7.7%.
Read our full analysis of Amazon’s results here and Carvana’s results here.
Over the past year, investors have repeatedly shifted their focus from one macro narrative to another (AI disruption and AI capex spending to geopolitics, interest rates, and the broader health of the economy). While some of the consumer internet stocks have shown solid performance in this choppy environment, the group has generally underperformed, with share prices down 4.2% on average over the last month. Coupang is down 15.1% during the same time and is heading into earnings with an average analyst price target of $25.83 (compared to the current share price of $16.26).
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