By Tracy Qu

Meituan is scheduled to report results for the third quarter on Friday. Here is what you need to know:

NET PROFIT: The Chinese food-delivery company will likely report net profit of 10.20 billion yuan, equivalent to $1.41 billion, according to the consensus estimate of nine analysts polled by FactSet. That would be significantly higher than 3.59 billion yuan in the year-earlier period.

REVENUE: Revenue is estimated at 91.80 billion yuan, according to FactSet, up 20% from a year ago.

The company's Hong Kong-listed shares have doubled this year, helped by the 55% gain in the third quarter. The stock and the broader market got a boost in late September after Beijing's stimulus pledges and policy support to revive the economy.

WHAT TO WATCH:

--GUIDANCE: Investors have been holding high expectations for Meituan's business performance in the final quarter of the year and 2025, as suggested by the stock's recent strong performance. Citi said metrics and demand for the Golden Week holiday in October seem solid. "We caution whether an 'in-line fourth-quarter guidance' is sufficient to meet the already high expectation," analysts led by Alicia Yap said in a note.

--DELIVERY BUSINESS: Meituan's delivery business likely benefited from some new strategies, Sealand Securities analysts said in a research note. The company rolled out several seasonal campaigns during the third quarter, which the analysts said likely helped sales growth. They expect revenue from its core food-delivery business to have risen 15% to 45.9 billion yuan for the quarter.

Write to Tracy Qu at tracy.qu@wsj.com

(END) Dow Jones Newswires

November 28, 2024 03:37 ET (08:37 GMT)

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