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Alibaba (BABA) Surpasses Q3 Earnings and Revenue Estimates
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Alibaba Group Holding Limited (BABA - Free Report) reported third-quarter fiscal 2021 earnings of $3.38 per ADS, which surpassed the Zacks Consensus Estimate of $3.11. Also, the bottom line increased 21% year over year.
It reported revenues of RMB221.1 billion (US$33.9 billion), up 37% from the prior-year quarter. The year-over-year revenue increase was driven by strength in the company’s China commerce retail business and cloud computing business.
Also, revenues outpaced the Zacks Consensus Estimate of US$32.5 billion.
Revenues by Segments
Alibaba has four reportable segments — Core Commerce, Cloud Computing, Digital Media and Entertainment, and Innovation Initiatives. The details of these segments are discussed below.
Core Commerce: This segment comprises marketplaces operating in retail and wholesale commerce in China, as well as international commerce. The segment’s revenues for the quarter totaled RMB195.5 billion (US$30 billion), reflecting an increase of 38% on a year-over-year basis.
China commerce retail business (accounting for 69% of total revenues) — The business vertical’s revenues for the quarter were RMB153.7 billion (US$23.6 billion), reflecting an increase of 39% year over year.
China commerce wholesale business (2% of total revenues) — This business generated revenues of RMB3.8 billion (US$587 million), reflecting a 14% increase from the year-ago quarter. The increase in average revenues from paying members on 1688.com aided revenue growth.
International commerce retail business (5% of total revenues) — Revenues for the quarter were RMB10.2 billion (US$1.6 billion), increasing 37% year over year. The increase was driven by revenue growth from Lazada and Trendyol.
International commerce wholesale business (2% of total revenues) — This business generated revenues of RMB3.8 billion (US$577 million), which increased 53% from the prior-year quarter. The growth was due to an increase in the number of paying members on the alibaba.com platform and revenues generated by cross-border related value added services.
Cainiao logistics services (5% of total revenues) — This business generated revenues of RMB11.4 billion (US$1.7 billion), up 51% year over year. The segment represents revenues from growing cross-border and international commerce retail businesses.
Local consumer services (4% of total revenues) — This business generated revenues of RMB8.3 billion (US$1.3 billion), which increased 10% year over year.
Others business (2% of total revenues) — The business generated revenues of RMB4.4 billion (US$675 million), reflecting a 63% year-over-year increase.
Cloud Computing: This segment comprises Alibaba Cloud that offers a complete suite of cloud services. The top line for the quarter was RMB16.1 billion (US$2.5 billion), up 50% from the year-ago figure, driven by growth in revenues from customers in Internet and retail industries.
Digital Media and Entertainment: The segment operates businesses through media properties that include UCWeb, Youku Tudou, OTT TV service, Alibaba Music and Alibaba Sports. Revenues from the segment were RMB8.1 billion (US$1.2 billion), reflecting an increase of 1% on a year-over-year basis.
Innovation Initiatives and Others: This segment includes businesses such as the YunOS operating system, AutoNavi, DingTalk enterprise messaging and others. Revenues for the quarter were RMB1.3 billion (US$207 million), up 9% year over year.
Alibaba Group Holding Limited Price, Consensus and EPS Surprise
Mobile Monthly Active Users (MAUs) — Mobile MAUs were 902 million, improving 9.6% from the prior-year quarter and 2.9% sequentially.
Annual Active Consumers — China retail marketplaces had 779 million annual active buyers, reflecting 9.2% year-over-year growth and 2.4% sequential improvement.
Operating Results
Alibaba’s operating expenses (product development + sales and marketing + general and administrative) of RMB47.6 billion increased 38.9% from a year ago.
Operating income was RMB49 billion versus RMB39.6 billion in the year-ago quarter.
Adjusted EBITDA increased 22% year over year to RMB68.4 billion (US$10.5 billion).
Cash Flow/Share Repurchase
Net cash flow from operations was RMB103.2 billion (US$15.8 billion) and free cash flow was RMB96.2 billion (US$14.7 billion) for the fiscal third quarter.
Long-term earnings growth for Semtech, JD.com, and Microchip Technology is currently projected at 12.5%, 51.2% and 14.9%, respectively.
These Stocks Are Poised to Soar Past the Pandemic
The COVID-19 outbreak has shifted consumer behavior dramatically, and a handful of high-tech companies have stepped up to keep America running. Right now, investors in these companies have a shot at serious profits. For example, Zoom jumped 108.5% in less than 4 months while most other stocks were sinking.
Our research shows that 5 cutting-edge stocks could skyrocket from the exponential increase in demand for “stay at home” technologies. This could be one of the biggest buying opportunities of this decade, especially for those who get in early.
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Alibaba (BABA) Surpasses Q3 Earnings and Revenue Estimates
Alibaba Group Holding Limited (BABA - Free Report) reported third-quarter fiscal 2021 earnings of $3.38 per ADS, which surpassed the Zacks Consensus Estimate of $3.11. Also, the bottom line increased 21% year over year.
It reported revenues of RMB221.1 billion (US$33.9 billion), up 37% from the prior-year quarter. The year-over-year revenue increase was driven by strength in the company’s China commerce retail business and cloud computing business.
Also, revenues outpaced the Zacks Consensus Estimate of US$32.5 billion.
Revenues by Segments
Alibaba has four reportable segments — Core Commerce, Cloud Computing, Digital Media and Entertainment, and Innovation Initiatives. The details of these segments are discussed below.
Core Commerce: This segment comprises marketplaces operating in retail and wholesale commerce in China, as well as international commerce. The segment’s revenues for the quarter totaled RMB195.5 billion (US$30 billion), reflecting an increase of 38% on a year-over-year basis.
China commerce retail business (accounting for 69% of total revenues) — The business vertical’s revenues for the quarter were RMB153.7 billion (US$23.6 billion), reflecting an increase of 39% year over year.
China commerce wholesale business (2% of total revenues) — This business generated revenues of RMB3.8 billion (US$587 million), reflecting a 14% increase from the year-ago quarter. The increase in average revenues from paying members on 1688.com aided revenue growth.
International commerce retail business (5% of total revenues) — Revenues for the quarter were RMB10.2 billion (US$1.6 billion), increasing 37% year over year. The increase was driven by revenue growth from Lazada and Trendyol.
International commerce wholesale business (2% of total revenues) — This business generated revenues of RMB3.8 billion (US$577 million), which increased 53% from the prior-year quarter. The growth was due to an increase in the number of paying members on the alibaba.com platform and revenues generated by cross-border related value added services.
Cainiao logistics services (5% of total revenues) — This business generated revenues of RMB11.4 billion (US$1.7 billion), up 51% year over year. The segment represents revenues from growing cross-border and international commerce retail businesses.
Local consumer services (4% of total revenues) — This business generated revenues of RMB8.3 billion (US$1.3 billion), which increased 10% year over year.
Others business (2% of total revenues) — The business generated revenues of RMB4.4 billion (US$675 million), reflecting a 63% year-over-year increase.
Cloud Computing: This segment comprises Alibaba Cloud that offers a complete suite of cloud services. The top line for the quarter was RMB16.1 billion (US$2.5 billion), up 50% from the year-ago figure, driven by growth in revenues from customers in Internet and retail industries.
Digital Media and Entertainment: The segment operates businesses through media properties that include UCWeb, Youku Tudou, OTT TV service, Alibaba Music and Alibaba Sports. Revenues from the segment were RMB8.1 billion (US$1.2 billion), reflecting an increase of 1% on a year-over-year basis.
Innovation Initiatives and Others: This segment includes businesses such as the YunOS operating system, AutoNavi, DingTalk enterprise messaging and others. Revenues for the quarter were RMB1.3 billion (US$207 million), up 9% year over year.
Alibaba Group Holding Limited Price, Consensus and EPS Surprise
Alibaba Group Holding Limited price-consensus-eps-surprise-chart | Alibaba Group Holding Limited Quote
Key Metrics
Mobile Monthly Active Users (MAUs) — Mobile MAUs were 902 million, improving 9.6% from the prior-year quarter and 2.9% sequentially.
Annual Active Consumers — China retail marketplaces had 779 million annual active buyers, reflecting 9.2% year-over-year growth and 2.4% sequential improvement.
Operating Results
Alibaba’s operating expenses (product development + sales and marketing + general and administrative) of RMB47.6 billion increased 38.9% from a year ago.
Operating income was RMB49 billion versus RMB39.6 billion in the year-ago quarter.
Adjusted EBITDA increased 22% year over year to RMB68.4 billion (US$10.5 billion).
Cash Flow/Share Repurchase
Net cash flow from operations was RMB103.2 billion (US$15.8 billion) and free cash flow was RMB96.2 billion (US$14.7 billion) for the fiscal third quarter.
Zacks Rank & Key Picks
Alibaba currently carries a Zacks Rank #4 (Sell). Some better-ranked stocks in the broader technology sector include Semtech Corporation (SMTC - Free Report) , JD.com, Inc. (JD - Free Report) and Microchip Technology Incorporated (MCHP - Free Report) , each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Long-term earnings growth for Semtech, JD.com, and Microchip Technology is currently projected at 12.5%, 51.2% and 14.9%, respectively.
These Stocks Are Poised to Soar Past the Pandemic
The COVID-19 outbreak has shifted consumer behavior dramatically, and a handful of high-tech companies have stepped up to keep America running. Right now, investors in these companies have a shot at serious profits. For example, Zoom jumped 108.5% in less than 4 months while most other stocks were sinking.
Our research shows that 5 cutting-edge stocks could skyrocket from the exponential increase in demand for “stay at home” technologies. This could be one of the biggest buying opportunities of this decade, especially for those who get in early.
See the 5 high-tech stocks now>>