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What: Shares of Chinese e-commerce specialist E-Commerce China Dangdang
So what: It's been a tough couple of months for Dangdang. The last time I peeked in on the company, shares were getting battered after the company's CFO decided to abruptly call it quits. This time around, the losses were driven by what investors found in the company's quarterly earnings roundup.
On an absolute basis, the 58% year-over-year revenue growth looked pretty darn good. Unfortunately, the $172 million tally for the quarter didn't quite stack up to the $176 million that Wall Street was looking for. On the bottom line, investors were expecting a loss, but the company's loss per share of $0.20 was actually better than the $0.24 loss that analysts had predicted.
Now what: While the results for the current quarter may not sound so bad, what probably has investors really fired up today is management's outlook for the upcoming quarter. The company sees its revenue growth rate slowing in the next quarter to 50%, for a quarterly finish at roughly $188 million. The 10 Wall Street analysts covering the company had been projecting $202 million for the quarter.
So, when all was said and done with Dangdang's quarter, it appears that slower-than-expected growth is one more concern that investors need to heap on the pile here.
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