E-Commerce China Dangdang
The 10-second takeaway
For the quarter ended June 30 (Q2), E-Commerce China Dangdang beat slightly on revenues and missed expectations on earnings per share.
Compared to the prior-year quarter, revenue increased significantly and GAAP loss per share increased.
Margins contracted across the board.
E-Commerce China Dangdang booked revenue of $190.1 million. The 10 analysts polled by S&P Capital IQ foresaw revenue of $186.7 million on the same basis. GAAP reported sales were 55% higher than the prior-year quarter's $122.3 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at -$0.23. The nine earnings estimates compiled by S&P Capital IQ averaged -$0.21 per share. GAAP EPS were -$0.24 for Q2 compared to -$0.06 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 13.1%, 120 basis points worse than the prior-year quarter. Operating margin was -10.4%, 380 basis points worse than the prior-year quarter. Net margin was -10.1%, 650 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $215.6 million. On the bottom line, the average EPS estimate is -$0.23.
Next year's average estimate for revenue is $865.3 million. The average EPS estimate is -$0.87.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 174 members out of 237 rating the stock outperform, and 63 members rating it underperform. Among 35 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 17 give E-Commerce China Dangdang a green thumbs-up, and 18 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on E-Commerce China Dangdang is hold, with an average price target of $7.70.
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