E-Commerce China Dangdang Increases Sales but Misses Revenue Estimate
E-Commerce China Dangdang (NYS: DANG) reported earnings on May 17. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended March 31 (Q1), E-Commerce China Dangdang missed estimates on revenues and exceeded expectations on earnings per share.
Compared to the prior-year quarter, revenue increased significantly and GAAP earnings per share.
Margins dropped across the board.
E-Commerce China Dangdang notched revenue of $172.1 million. The nine analysts polled by S&P Capital IQ foresaw a top line of $175.8 million on the same basis. GAAP reported sales were 64% higher than the prior-year quarter's $105.0 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 -$0.20. The seven earnings estimates compiled by S&P Capital IQ anticipated -$0.22 per share. GAAP EPS were -$0.04 for Q1 compared to $0.00 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 14.2%, 530 basis points worse than the prior-year quarter. Operating margin was -9.9%, 970 basis points worse than the prior-year quarter. Net margin was -9.2%, 960 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $186.9 million. On the bottom line, the average EPS estimate is -$0.20.
Next year's average estimate for revenue is $863.4 million. The average EPS estimate is -$0.87.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 183 members rating the stock outperform and 69 members rating it underperform. Among 41 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 21 give E-Commerce China Dangdang a green thumbs-up, and 20 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 $7.89.
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At the time this article was published 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 ofMotley 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.