E-Commerce China Dangdang Beats Up on Analysts Yet Again

Seth Jayson, The Motley Fool
Updated

E-Commerce China Dangdang (NYS: DANG) reported earnings on March 7. Here are the numbers you need to know.

The 10-second takeaway
 For the quarter ended Dec. 31 (Q4), E-Commerce China Dangdang met expectations on revenues and exceeded expectations on earnings per share.

Compared to the prior-year quarter, revenue grew significantly. GAAP loss per share shrank.


Margins expanded across the board.

Revenue details
 E-Commerce China Dangdang recorded revenue of $259.2 million. The eight analysts polled by S&P Capital IQ wanted to see net sales of $258.6 million on the same basis. GAAP reported sales were 33% higher than the prior-year quarter's $195.4 million.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
 EPS came in at -$0.24. The seven earnings estimates compiled by S&P Capital IQ forecast -$0.26 per share. GAAP EPS were -$0.24 for Q4 versus -$0.26 per share for the prior-year quarter.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
 For the quarter, gross margin was 13.4%, 290 basis points better than the prior-year quarter. Operating margin was -9.4%, 270 basis points better than the prior-year quarter. Net margin was -7.6%, 290 basis points better than the prior-year quarter. (Margins calculated in GAAP terms.)

Looking ahead
 Next quarter's average estimate for revenue is $231.0 million. On the bottom line, the average EPS estimate is -$0.21.

Next year's average estimate for revenue is $1.06 billion. The average EPS estimate is -$0.76.

Investor sentiment
 The stock has a two-star rating (out of five) at Motley Fool CAPS, with 171 members out of 226 rating the stock outperform, and 55 members rating it underperform. Among 42 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 27 give E-Commerce China Dangdang a green thumbs-up, and 15 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 outperform, with an average price target of $5.95.

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The article E-Commerce China Dangdang Beats Up on Analysts Yet Again originally appeared on Fool.com.

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. The Motley Fool has no position in any of the stocks mentioned. 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.

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