E-Commerce China Dangdang
The 10-second takeaway
For the quarter ended Dec. 31 (Q4), E-Commerce China Dangdang beat expectations on revenues and missed expectations on earnings per share.
Compared to the prior-year quarter, revenue grew significantly and GAAP loss per share grew.
Margins contracted across the board.
E-Commerce China Dangdang tallied revenue of $195.7 million. The 12 analysts polled by S&P Capital IQ predicted sales of $184.0 million on the same basis. GAAP reported sales were 81% higher than the prior-year quarter's $107.8 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 -$0.26. The eight earnings estimates compiled by S&P Capital IQ predicted -$0.16 per share. GAAP EPS were -$0.26 for Q4 compared to -$0.01 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 10.5%, 1,190 basis points worse than the prior-year quarter. Operating margin was -12.1%, 1,400 basis points worse than the prior-year quarter. Net margin was -10.5%, 1,260 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $173.5 million. On the bottom line, the average EPS estimate is -$0.21.
Next year's average estimate for revenue is $912.1 million. The average EPS estimate is -$0.83.
The stock has a one-star rating (out of five) at Motley Fool CAPS, with 169 members out of 241 rating the stock outperform, and 72 members rating it underperform. Among 44 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 26 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 $7.91.
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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.