Alibaba Group Holding Ltd.’s U.S.-listed shares were headed 5% higher in premarket trading Thursday after the Chinese e-commerce giant topped earnings expectations for its December quarter.
The company posted fiscal third-quarter net income of RMB46.8 billion ($6.8 billion), or RMB17.91 per American depositary share, compared with net income of RMB27.7 billion, or RMB10.19 per ADS, in the year-prior quarter.
After adjustments, Alibaba
BABA,
earned RMB19.26 peer ADS, up from RMB16.87 a share a year before, while analysts were modeling RMB16.79 a share.
Revenue inched up to RMB247.8 billion from RMB242.6 billion a year before. The FactSet consensus was for RMB245.9 billion.
“We delivered a solid quarter despite softer demand, supply chain and logistics disruptions due to impact of changes in COVID-19 measures,” Chief Executive Daniel Zhang said in a release. Alibaba anticipates “continued recovery in consumer sentiment and economic activity,” he added.
The company generated RMB170.0 billion in China commerce revenue, down from RMB171.9 billion a year prior.
Cloud revenue came in at RMB26.7 billion, or RMB 20.2 billion after inter-segment eliminations that reflect revenue from services provided to other Alibaba businesses. The company called out “healthy public cloud growth, partially offset by declining hybrid cloud revenue.”
See also: The AI chatbot phenomenon is now making waves in China, too
Shares of Alibaba have rallied about 8% so far this year, as the KraneShares CSI China Internet ETF
KWEB,
is near flat. The S&P 500
SPX,
has gained 4% this year.
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