Dingdong Q2 Profit Jumps Over 120% on Higher Orders
DDL sits 42% above its 52-week low of $1.65.
Summary
Dingdong's Q2 net income and non-GAAP net income both surged more than 120% year-over-year, driven by an 8.6% revenue increase to RMB 6.49 billion. Higher average monthly ordering users and increased order frequency among loyal members fueled the growth, along with newly opened fulfillment stations in Eastern China. Net income reached RMB 271.7 million, with adjusted net income at RMB 281.3 million. The company also reported record-high monthly GMV in July as it entered peak season. A portion of the profit boost came from ceasing depreciation and amortization on China business assets held for sale ahead of the pending Meituan transaction, an accounting impact expected to continue until that deal closes. The stock trades at 7 times forward earnings, below its three-month-ago multiple of 8, with a median analyst price target of $3.38, about 47.6% above the August 19 close.
At the time of this announcement, DDL was trading at $2.34 on NYSE in the Trade & Services sector, with a market capitalization of approximately $500.7M. The 52-week trading range was $1.65 to $3.41. This news item was assessed with positive market sentiment and an importance score of 8 out of 10. Source: Reuters.