Alibaba Delivers Mixed Quarterly Results
Market News

Alibaba Delivers Mixed Quarterly Results

Alibaba (BABA) delivered mixed financial results for the Q3 2022 ended December 31, 2021, as the company continued to execute its multi-engine growth strategy in a complex and volatile market environment. Earnings topped consensus estimates, but revenue missed despite growing 10% year-over-year. BABA shares fell 0.72% to close at $108.93 on February 24.

Alibaba is a Chinese company that operates online and mobile marketplaces in retail and wholesale trade.

Earnings

Revenue in the quarter landed at $38.01 billion, up 10% from the same quarter in the previous year and slightly lower than the consensus estimate of $38.83 billion. The increase was mostly driven by overall growth in China’s e-commerce segment, which expanded 7% year-over-year.

Net income attributed to shareholders came in at $3.21 billion, down 74% year-over-year. Alibaba delivered non-GAAP diluted earnings per ADS of $2.65, down 23% year-over-year but better than consensus estimates of $2.55.

The total number of active consumers in the Alibaba ecosystem rose to 1.28 billion for the 12 months ended December 31, 2021, representing an increase of 43 million year-over-year. The e-commerce giant had 979 million consumers in China and 301 million overseas.

During the quarter ended December 31, 2021, Alibaba repurchased 10.1 million shares for about $1.4 billion. For the nine months ended December 31, 2021, the company repurchased 42.2 million shares for about $7.7 billion.

Stock Rating

Citigroup analyst Alicia Yap recently reiterated a Buy rating on Alibaba stock with a $216 price target, implying 98.29% upside potential to current levels.

Consensus among analysts is a Hold based on 18 Buys and 2 Holds. The average Alibaba price target of $188.56 implies 73.10% upside potential to current levels.

Download the TipRanks mobile app now

To find good ideas for stocks trading at attractive valuations, visit TipRanks’ Best Stocks to Buy, a newly launched tool that unites all of TipRanks’ equity insights.

Read full Disclaimer & Disclosure.

Related News:
Quebecor Reports Higher Q4 Profit, Dividend Rises 9%
Agnico Eagle Posts Record Gold Production, Dividend Rises
Whitecap Resources Swings to Profit in 2021

Go Ad-Free with Our App