4Q24 Revenue: $15.15B, +24.0% YoY, miss estimates by $860M
4Q24 Non-GAAP EPADS: $2.76, beat estimates by $0.04
FY25 Guidance: No guidance provided.
Comment: PDD reported weaker-than-expected revenue for 4Q24, as consumer demand in China remained sluggish despite aggressive discounting and government stimulus aimed at boosting spending. While these measures have attracted some shoppers, PDD’s results suggest that broader economic weakness continues to weigh on consumer sentiment. The company also faces intense competition from industry leaders Alibaba and JD.com, both of which recently posted better-than-expected revenues. However, PDD has benefited from the rapid growth of its international platform, Temu. Looking ahead, Temu faces potential risks from proposed changes to the U.S. de minimis policy, which currently allows duty-free imports for goods valued under $800. While PDD anticipates continued challenges from macroeconomic headwinds and competitive pressures, the company could see some tailwinds from upcoming stimulus measures in China, which are expected to support consumer spending. 1Q25recommended trading range: $115 to $145. Neutral Outlook.
2Q25 Revenue: $16.7B, +5.7% YoY, beat estimates by $90M
2Q25 Non-GAAP EPS: $2.82, miss estimates by $0.03
3Q25 Guidance: Expects revenue to be between $16.9bn to $17.5bn, midpoint of $17.2bn below consensus of $17.22bn
FY25 Guidance: Expect revenue growth to be between 5% to 7%, midpoint of 6.0% above consensus of 5.73%, and vs a revenue growth of 4% to 7% previously; expects GAAP diluted EPS to be between $12.55 to $12.79, midpoint of $12.67 below consensus of $12.76, and vs $12.43 to $12.79 previously; expects GAAP operating margin to be between 15.6% to 15.7%; expects free cash flow to be between $8.8bn to $9.5bn; expects operating cash flow to be between $9.4bn to $10.1bn, midpoint of $9.75bn below consensus of $10.03bn.
Comment: Accenture delivered mixed results but raised its FY25 guidance. However, the company flagged headwinds from the Trump administration’s focus on cutting government spending, led by Tesla CEO Elon Musk’s Department of Government Efficiency, which is dampening its federal sales. In FY24, federal contracts accounted for roughly 8% of Accenture’s global revenue and 16% of its Americas revenue. The company has also been impacted by new guidance from the U.S. General Services Administration, directing federal agencies to reassess contracts with the 10 highest-paid consulting firms and terminate those deemed non-essential. While Accenture maintains that its federal work is mission-critical, it anticipates ongoing uncertainty as government priorities shift. Despite the company’s solid fundamentals, investors remain cautious about risks tied to slowing U.S. government spending, which could weigh on near-term sales. 3Q25recommended trading range: $280 to $320. Negative Outlook.
2Q25 Revenue: $8.05B, +38.3% YoY, beat estimates by $150M
2Q25 Non-GAAP EPS: $1.56, beat estimates by $0.14
2Q25 Dividend: Micron Technology declares $0.115/share quarterly dividend, in line with previous; Forward yield 0.45%; Payable April 15; for shareholders of record March 31; ex-div March 31.
3Q25 Guidance: Expect revenue to be $8.80bn (+/- $200mn), above consensus of $8.48bn; expects non-GAAP gross margin to be 36.5% (+/- 1.0%); expects non-GAAP EPS to be $1.57 (+/- $0.10), above consensus of $1.52.
Comment: Micron delivered strong results, driven by robust demand for its NAND storage. While NAND growth continues to lag DRAM, the slowdown was less severe than analysts had expected. Looking ahead, the company provided an upbeat outlook for 3Q25, forecasting record quarterly revenue fueled by increasing demand for both DRAM and NAND. Micron remains on track for record revenue and significantly improved profitability in FY25. Additionally, AI-driven demand for high-bandwidth memory could emerge as a long-term growth driver for Micron and other memory manufacturers. However, macroeconomic uncertainty may temper the pace of AI investments, posing a potential near-term headwind for the company. 3Q25recommended trading range: $96 to $120. Positive Outlook.
3Q25 Revenue: $11.27B, -9.3% YoY, beat estimates by $240M
3Q25 GAAP EPS: $0.54, beat estimates by $0.26
4Q25 Guidance: Nike expects revenue to be down in the low midteens range, in line with the 12% decline analysts had penciled in. Gross margins will be down approximately four to five percentage points. This estimate includes the impacts of newly implemented tariffs from Chinese imports, and reflects the uncertainty in the operating environment, including geopolitical dynamics and declining consumer confidence.
Comment: Nike reported better-than-expected results, though market conditions remain challenging, with revenue declining 9.3% YoY. The company’s direct-to-consumer segment, including Nike-owned stores, saw an even steeper drop, with sales falling 12% to $4.7bn, while online revenue plunged 15%. Despite these declines, the stronger-than-expected performance suggests early signs of a turnaround after years of post-pandemic struggles. Under CEO John Hill’s leadership, Nike is prioritizing marketing, product innovation, and rebuilding relationships with wholesalers. The company is also aggressively clearing out older inventory through markdowns, which has weighed on profitability—a strategy expected to continue through FY26. Looking ahead, Nike noted that 4Q24 will see the biggest impact from its “WinNow” initiatives, with revenue and gross margin headwinds expected to ease thereafter. 4Q25recommended trading range: $60 to $76. Neutral Outlook.
3Q25 Revenue: $22.2B, +2.3% YoY, beat estimates by $320M
3Q25 Non-GAAP EPS: $4.51, miss estimates by $0.12
FY25 Guidance: Lowered adjusted earnings to range between $18 to $18.60 per share, below the $18.95 average analyst estimate. Also cautioned that revenue may be slightly down versus the prior year, compared with its previous expectation that sales would be roughly flat.
Comment: FedEx delivered mixed third quarter results and lowered its full-year earnings forecast due to persistent inflation and uncertain shipment demand, which continue to pressure its bottom line. The company now expects adjusted earnings between US$18 to US$18.60 per share, below analysts’ estimates of US$18.95. Revenue is also projected to decline slightly compared to last year, a downgrade from its prior expectation of flat sales. Higher inflation has driven up costs, while weakening consumer confidence and slowing industrial activity have impacted business-focused shipping services. The expiration of its U.S. Postal Service contract further contributed to lower volumes. Additionally, uncertainties from trade policies, including potential tariff changes under former President Donald Trump, have made demand forecasting challenging. FedEx is undergoing a major operational transformation, including integrating its Express and Ground delivery networks and spinning off its freight division into a separate publicly traded company. The latter move is aimed at streamlining operations and sharpening its focus on its core parcel business. The planned freight spinoff, estimated to have a standalone enterprise value of over US$30bn. FedEx may continue to face short-term headwinds due to macroeconomic challenges, however, we anticipate gradual volume recovery in the longer-term. 4Q25recommended trading range: $230 to $245. Negative Outlook.
1Q25 Revenue: $7.63B, +4.4% YoY, beat estimates by $200M
1Q25 Non-GAAP EPS: $2.14, beat estimates by $0.43
2Q25 Guidance: Expect deliveries of 19,500-20,500, vs. consensus of 20,14 and new orders of 22,500-23,500, vs. consensus of 23, 547. Average sales price is expected to be $300K-$400K, lower than the estimate of $417.5K.
Comment: Lennar Corp reported a decline in first-quarter profit as high mortgage rates and elevated home prices deterred potential buyers. Despite strong demand, affordability challenges, driven by high interest rates, inflation, and weak consumer confidence, have limited homeownership accessibility. The company saw a 1% decrease in its average sales price to US$408,000 and reported home sales gross margins of 18.7%, missing its forecast range. To attract buyers and manage inventory, Lennar has been offering incentives like interest rate buydowns and price reductions, impacting margins. The company posted a quarterly profit of US$1.96 per share, down from US$2.57 a year ago, partially due to a US$62.5mn loss on technology investments. However, revenue rose 4.4% to US$7.6bn, exceeding analyst expectations, and home deliveries increased to 17,834 units from 16,798 a year ago. For the second quarter, the company expects to deliver 19,500-20,500 units and new orders of 22,500-23,500 units, with average sales prices between US$300,000 to US$400,000. Despite continued emphasis on entry-level housing and strategic land acquisitions, increased cost of living alongside high mortgage rates may further deter demand for house purchases in the near-term. 2Q25recommended trading range: $115 to $125. Neutral Outlook.
4Q24 Revenue: $3.12B, +39.2% YoY, miss estimates by $70M
4Q24 Non-GAAP EPS: -$0.49, miss estimates by $0.17
FY25 Guidance: Expects to deliver 320,000 vehicles.
Comment: ZEEKR reported mixed financial results for the fourth quarter, it delivered total revenues of RMB 22.78bn, marking a 39.2% YoY increase, with vehicle sales contributing RMB 19.3bn, up 82.2% from the same period last year. The gross margin improved to a record 19.0%, compared to 14.2% in 4Q23, while the net loss narrowed significantly by 72.1% YoY to RMB 821mn. For the full year 2024, ZEEKR’s vehicle sales reached RMB 55.32 billion, a 63.1% increase from the prior year. The company delivered a total of 222,123 vehicles in 2024, reflecting a strong 87% growth compared to the previous year, bringing cumulative deliveries to 418,756 vehicles by year-end. Looking ahead, ZEEKR aims to deliver 320,000 vehicles in 2025, reinforcing its commitment to product excellence and customer trust. As competition in the EV market intensifies, the company’s decision to roll out its advanced driver-assistance system (ADAS) for free, alongside continuous upgrades and strategic integration across Geely-owned brands, is expected to enhance its market position. While ZEEKR remains loss-making, these initiatives demonstrate its focus on long-term growth and competitiveness in the evolving EV landscape. 1Q25recommended trading range: $25 to $28. Neutral Outlook.
