Boston, MA, 02/28/2014 – E Commerce China DangdangInc (ADR) (NYSE:DANG), the business to customer e-commerce company jumped by a whopping 31% on Thursday after it reported an upbeat fourth quarter earnings, widely above the market consensus.
Fourth Quarter Brief
In the fourth quarter, E Commerce China DangdangInc (ADR) (NYSE:DANG)’s earnings per share were at 4 cents per share, above the analyst estimate by 11 cents per share. Additionally, its revenue of $325.7 million too came higher than the estimates by $9.87 million. The revenue increase was 25.7% year-over-year.
Some of the key takeaways include a record increase of 18% year-over-year in its active customers to 8.9 million and total orders grew 13% to 18.1 million. The marketplace gross merchandise value (GMV) too surged to $230.3 million, that is, 154.2%. Apart from this, the media product sales rose 28% to $197.4 million over the last one year. General merchandise and other revenues accounted growth of 12.8% and 24.9% respectively. During the call, the company stated that its cost control along with margin improvements have steered the profits of the company up and sooner than expected. Gross margin increased 420 basis points to 17.6% year-over-year as the company’s CEO Peggy Yu Yu points out on the successful transition of the company from online bookstore to a more integrated online shopping mall. He added that under the new model, E Commerce China DangdangInc (ADR) (NYSE:DANG) targets mid to high end consumers. Moreover, thecosts related to fulfillment, marketing and content too fell altogether in relation to the revenues.
An Optimistic Future Guideline
The company is optimistic for its first quarter revenue as well, which is projected around RMB 1.734 billion or $282.8 million, above the market estimate of $256.6 million. According to the experts, the recovery in Chinese economy coupled with strong growth projection by E Commerce China DangdangInc (ADR) (NYSE:DANG) indicates a healthy growth of sales in the upcoming period.