Tencent (TCEHY) to Report Q3 Earnings: What’s in the Cards? – Nasdaq
Tencent Holdings TCEHY is about to report third-quarter 2019 outcomes on Nov 13.
For the quarter, the Zacks Consensus Estimate for earnings has been regular at 38 cents per share over the previous 30 days, indicating 26.7% development from the yr-in the past quarter’s reported determine.
The consensus mark for revenues at present stands at $13.86 billion, implying development of 17% from the determine reported in the yr-in the past quarter.
In the second quarter, the firm reported non-GAAP earnings of 36 cents per share that beat the Zacks Consensus Estimate by 2.9%.
However, revenues of $12.92 billion lagged the consensus mark of $13.28 billion.
Tencent Holding Ltd. Price and EPS Surprise
Tencent Holding Ltd. value-eps-shock | Tencent Holding Ltd. Quote
Let’s see how issues are shaping up for this announcement.
Key Factors to Watch
Tencent is considered one of the greatest sport distributors in China. The firm is predicted to have benefited from its dominance in the nation, which is the world’s largest online game market in phrases of customers and revenues. However, stringent rules are anticipated to have harm the consumer base.
Nevertheless, persevering with momentum for Honor of Kings and Perfect World Mobile is predicted to have pushed the high line. Further, since its launch in May, Peacekeeper Elite exceeded 50 million DAU at the finish of the second quarter and the momentum probably continued in the third quarter. The high line is predicted to mirror DAU development together with season move providing.
Moreover, a strong gaming portfolio is a key catalyst. In July, Tencent launched three smartphone video games — racing sport KartRider Rush, technique sport Game of Thrones: Winter is Coming and RPG Dragon Raja.
Additionally, the worldwide consumer base is predicted to have expanded in the to-be-reported quarter, courtesy of PUBG MOBILE and new video games resembling Speed Drifter and Chess Rush.
Also, development in digital content material revenues, owing to video streaming subscriptions and reside broadcast companies, is predicted to have aided social community revenues.
Further, momentum in cloud companies is predicted to have continued owing to quick penetration into key sectors, together with finance. This is predicted to have pushed FinTech and Business Services revenues in the to-be-reported quarter.
What Our Model Says
According to the Zacks mannequin, an organization with a constructive Earnings ESP together with a Zacks Rank #1 (Strong Buy), 2 (Buy) or three (Hold) has a very good probability of beating estimates. But that’s not the case right here.
Tencent has a Zacks Rank #four (Sell) and an Earnings ESP of -2.63%. You can uncover the finest shares to purchase or promote earlier than they’re reported with our Earnings ESP Filter.
Stocks With Favorable Combination
Here are some corporations, which, per our mannequin, have the proper mixture of parts to submit an earnings beat this quarter:
Twin River Worldwide Holdings TRWH has an Earnings ESP of +13.25% and a Zacks Rank #2. You can see the full record of as we speak’s Zacks #1 Rank shares right here.
Viacom VIAB has an Earnings ESP of +13.38% and a Zacks Rank #three.
Momo MOMO has an Earnings ESP of +three.94% and a Zacks Rank #three.
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