Following the earnings announcements of US-listed Chinese firms including JD.com (NASDAQ: JD), Tencent Music (NYSE: TME), Gogo (NASDAQ: GOGO) and Luckin Coffee (NASDAQ: LK), fintech firm Qudian (NYSE: QD) is set to post quarterly results on Friday, August 16, before the regular trading hours.
Notably, Qudian is one of the few US-listed Chinese firms that have performed relatively well in the backdrop of US-China trade spat as well as a slowing economy back home. The stock has doubled since the beginning of this year, but is still considered underpriced by a margin of 10%.
For the second quarter, analysts expect a 14% decline in revenues to $278.37 million. However, Wall Street expects loan balance and origination volume to grow year-over-year and offset a part of the market-wide weakness that is expected to weigh on the top-line.
Second-quarter profit is projected to be 51 cents per share, compared with 32 cents per share reported last year. In the past two months, the EPS estimate has been revised from the prior projection of 43 cents per share, lending some confidence leading up to the upcoming results.
Qudian has topped earnings estimates in all of the trailing four quarters.
The Xiamen-based firm owes its initial success to the opening up of the online credit market in China, allowing companies to set up digital platforms for small consumer credit products. However, last year the sector came under stringent regulatory scrutiny, resulting in curbs on such companies.
In the first quarter, Qudian reported stronger than expected revenues and profit, sending its shares higher.