Alibaba (BABA) sprinted past fiscal fourth-quarter earnings and revenue estimates Wednesday morning as the China e-commerce giant continued its expansion into new markets.
The company reported adjusted earnings of $1.28 per share, up 50% in local currency vs. a year earlier, on revenue of $13.93 billion, up 51%. Wall Street expected earnings of 96 cents on revenue of $13.3 billion. The Alibaba earnings report arrived before the stock market open, for its fiscal fourth quarter ended March 31.
Alibaba stock climbed 1.6%, closing at 177.60 on the stock market today. Overall, Alibaba stock has retreated since hitting a 9-month high of 195.72 on May 3, due to the trade war between the U.S. and China.
Alibaba is the largest e-commerce company in China and is also expanding into cloud-computing services. It has a big play in groceries and multimedia services and increasingly focuses on brick-and-mortar retail. Another growth driver is international expansion.
721 Million Mobile Users
Alibaba ended the quarter with 654 million active annual buyers, an increase of 18% from the year-ago period. Mobile monthly active users reached 721 million in March, up 3%, or 22 million.
Alibaba said it processed $853 billion in gross merchandise sales on its various e-commerce platforms for the year, an increase of 19% from the prior year.
“Our cloud and data technology and tremendous traction in new retail have enabled us to continuously transform the way businesses operate in China and other emerging markets, which will contribute to our long-term growth,” Chief Executive Daniel Zhang said in prepared remarks with the Alibaba earnings release.
Cloud computing revenue grew 76% from the year-ago period to $1.15 billion. That was primarily driven by an increase in average spending per customer.
For its current fiscal year Alibaba expects revenue of about $72.7 billion.
Please follow Brian Deagon on Twitter at @IBD_BDeagon for more on tech stocks, analysis and financial markets.
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