DoorDash Set to Report Q4 Earnings: What's in Store for the Stock?
DoorDash DASH is set to release its fourth-quarter 2024 results on Feb. 11.
The Zacks Consensus Estimate for earnings is pegged at 34 cents per share, which remained unchanged in the past 30 days. DASH reported a loss of 39 cents per share in the year-ago quarter.
Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.
The Zacks Consensus Estimate for revenues is currently pegged at $2.83 billion, suggesting a 22.97% increase year over year.
The company’s earnings surpassed the Zacks Consensus Estimate in two of the trailing four quarters while missing it twice, with a negative average surprise of 86.19%.
Let’s see how things have shaped up for this announcement:
Factors to Note
DoorDash’s fourth-quarter 2024 performance is expected to have benefited from strong total orders and Marketplace GOV, enhanced logistics efficiency and an increasing contribution from advertising.
For fourth-quarter 2024, the company anticipates Marketplace GOV in the range of $20.6-$21 billion. The Zacks Consensus Estimate for fourth-quarter Marketplace GOV is pegged at $20.93 billion, suggesting 18.65% year-over-year growth.
DoorDash has reported strong consumer demand, particularly in digital and omnichannel experiences. The trend of increasing digital orders, especially in restaurants and grocery segments, is likely to have contributed positively to the to-be-reported quarter.
DoorDash’s expanding partner network, namely Eataly, El Super and Fiesta Mart, to broaden the reach of on-demand grocery delivery across multiple regions is expected to have boosted total orders growth in the to-be-reported quarter.
In the third quarter, total orders increased 18% year over year to 643 million. The Zacks Consensus Estimate for fourth-quarter total orders is pegged at $675 million, suggesting 17.5% year-over-year growth.
DoorDash’s growing efforts to expand its grocery offerings, improve user experience and increase DashPass adoption and the retention of customers are expected to have boosted growth in the grocery category in the to-be-reported quarter.
The subscription service, DashPass, has reached an all-time high in subscribers. This growth is expected to have enhanced customer loyalty and increased order frequency in the fourth quarter.
Increasing monthly active users with strong contributions from domestic and international markets is expected to have aided DASH’s top-line growth.
However, DoorDash is facing extensive competition in its largest business category, the local food delivery logistics, which is expected to have hurt top-line growth in the to-be-reported quarter.
What Our Model Says
Per the Zacks model, the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. That’s the exact case here.
DoorDash has an Earnings ESP of +20.79% and a Zacks Rank #2 at present. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Other Stocks to Consider
Here are some companies worth considering, as our model shows that these have the right combination of elements to beat on earnings in their upcoming releases:
Akamai Technologies AKAM currently has an Earnings ESP of +0.09% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Akamai Technologies shares have lost 19.6% in the trailing 12 months. AKAM is set to report its fourth-quarter 2024 results on Feb. 20.
Yelp YELP presently has an Earnings ESP of +12.87% and a Zacks Rank #3.
Yelp shares have plunged 9.5% in the trailing 12 months. YELP is set to report its fourth-quarter 2024 results on Feb. 13.
Twilio TWLO has an Earnings ESP of +3.28% and a Zacks Rank #1.
Twilio shares have appreciated 111.1% in the trailing 12 months. TWLO is set to report its fourth-quarter 2024 results on Feb. 13.
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