What happened
Shares of Pinduoduo Inc. (PDD -1.38%), a Chinese e-commerce company, were rising fast this morning after the company reported better-than-expected third-quarter results.
The e-commerce stock was up by 15.2% as of 10:20 a.m. ET.
So what
Pinduoduo's third-quarter revenue increased 65% from the year-ago quarter to $4.99 billion, outpacing Wall Street's consensus estimate of $4.31 billion.
Image source: Getty Images.
Not only did the company easily beat analysts' expectations for the top line, but Pinduoduo's bottom line also impressed investors.
The company reported non-GAAP (adjusted) earnings per share of $1.21, easily beating the consensus estimate of $0.65 for the quarter.
Pinduoduo's CEO, Lei Chen, said in a press release that while some projects were affected in the third quarter, the company will "continue to step up our investment in R&D and create long-term value through innovations."
Another highlight from the quarter included revenue from transaction services jumping 102% to $987.2 million.
Now what
Pinduoduo's management didn't give any guidance for the upcoming quarter, but investors were optimistic about the company's prospects even without a firm forward outlook.
Notably, the company's share price gains today also came at the same time as protests have erupted in China recently over COVID-related lockdowns.
Chinese stocks have already been volatile because of China's strict coronavirus lockdown policies. The current protests could likely add more instability to these stocks, including Pinduoduo's, in the near term.
