E-commerce solutions company Baozun (NASDAQ:BZUN) saw its American depositary shares (ADS) fall as much as 15.9% on Wednesday. The stock is down 15.4% at the time of this writing.
While Baozun slightly beat consensus analyst estimates for revenue and non-GAAP EPS, Baozun's outperformance wasn't enough to impress investors. The stock may be lower as investors' expectations for the stock have climbed higher recently. Even after today's pullback in the stock price, shares are up 39% in the past six months.
Baozun reported revenue of 890.2 million Chinese renminbi, or about $134 million per share. This was up 18.8% compared to revenue in the year-ago quarter.
Baozun's adjusted earnings per ADS was 0.59 Chinese renminbi, or about $0.09 -- about $0.01 higher than the consensus analyst estimate for the quarter.
Baozun CEO Mr. Vincent Qiu was happy with the quarter. "We are pleased to report another outstanding quarter where we continued to strengthen our long-term competitive advantages, drove strong growth from our existing online stores and optimized efficiency with innovative new tools," Mr. Qui said.
Looking ahead, Qiu said Baozun will invest in technology in order to strengthen its competitive position. Importantly, Baozun said it expects its services revenue in its fourth quarter to increase 55% year over year. This means management doesn't expect growth in this key segment to decelerate, as services revenue in Q3 was up 55% year over year, as well.