Shares of Uxin (NASDAQ:UXIN) slumped on Monday after the Chinese company reported its second-quarter results. While the online used car specialist's revenue soared and adjusted earnings came in ahead of expectations, the stock was down about 9.2% as of 11:50 a.m. EDT. Shares had fallen much as 16.6% earlier in the session.
Uxin reported second-quarter revenue of $63.9 million, up 58.3% year over year in local currency. The consumer segment generated $46.9 million in revenue, an 11-fold increase from the prior-year period, while the business segment saw revenue decline 57.5% year over year to $9.9 million.
Business revenue fell due to "the Company's change of approach in serving consumers with car-selling needs starting from the third quarter of 2018, as well as dealers' growing appetite for retail transactions through the Company's 2C [to consumers] platform."
Non-GAAP (adjusted) earnings per share was a loss of $0.05, beating the average analyst estimate by $0.07.
Looking ahead, Uxin expects to report third-quarter revenue between 440 million yuan and 460 million yuan, or between $61.8 million and $64.6 million at current exchange rates. This guidance reflects the company's divestiture of its loan facilitation-related business.
While Uxin beat expectations for its second-quarter results, it wasn't enough to impress investors. The stock is now down about 70% from its 52-week high.