FX.co ★ PDD Holdings Jumps In Pre-market On Upbeat Q4 Results Above View

PDD Holdings Inc. (PDD) has reported a considerable surge of near 150% in their fourth-quarter profit, supported by over 100% revenue growth. This striking performance outpaces street estimates, and in turn, the company's shares saw a more than 12% increase in pre-market trading.

The incredible profit posted by this Chinese e-commerce powerhouse for the fourth-quarter reached RMB 23.280 billion, equivalent to $3.279 billion, which presents a huge 146% leap from RMB 9.454 billion reported in the same period last year.

The earnings per ADS (American Depository Share) have also shown remarkable growth by increasing to RMB 15.83 or $2.23 from RMB 6.52 last year.

When we take out one-time items, the adjusted earnings come to RMB 25.477 billion or $3.588 billion, and the adjusted earnings per ADS rise to RMB 17.32 or $2.40. These figures considerably surpassed the average expectation of $1.61 per share estimated by 12 analysts surveyed by Thomson-Reuters, which usually exclude any special items.

Notably, revenues for the quarter also showed a stunning 123% rise to RMB 88.881 billion or $12.519 billion from RMB 39.820 billion in the previous year. This performance exceeded the consensus estimate of $11.14 billion.

In terms of the revenue stream, revenues from online marketing services and others showed a 57% increase to $6.856 billion, while the revenues from transaction services experienced a massive growth of 357%, amounting to $5.663 billion.

In the context of share performance, PDD shares had closed at $127.68, showing a 0.80% decline on Tuesday. However, the stock's trading range has varied between $59.67 and $152.99 in the past year.