Alibaba Group Holding Ltd. (NYSE: BABA) reported fiscal fourth-quarter and full-year 2018 results before markets opened Friday. The China-based internet giant reported adjusted diluted earnings per American depositary share (ADS) of $0.91 on revenues of $9.87 billion. That compares to earnings per ADS of $0.69 and revenues of $6.09 billion in the same period a year ago. Fourth-quarter results also compare to the consensus estimates for earnings of $0.86 per ADS on revenues of $9.27 billion.
One ADS is equal to one ordinary share, and the exchange rate used is based on 6.2726 yuan per dollar.
For the full year, Alibaba reported earnings per ADS of $5.24 and revenues of $39.9 billion. In the prior year, the company reported earnings of $3.70 per ADS and revenues of $24.98 billion. Analysts were looking for $5.20 per ADS and $38.95 billion.
The number of annual active buyers on Alibaba’s retail marketplaces totaled 552 million at the end of the fourth quarter, up by 98 million (21.5%) year over year. Monthly mobile active users rose from 507 million last year to 617 million (up 21.7%) at the end of March. The company’s core commerce revenues rose by 60% year over year, the cloud-computing segment revenues rose by 101%, digital media and entertainment segment revenues rose 33% and other revenues increased by 10%.
The company’s chief financial officer, Maggie Wu, said:
Looking ahead to fiscal 2019, we expect overall revenue growth above 60%, reflecting our confidence in our core business as well as positive momentum in new businesses. We expect our new growth initiatives will drive long-term, sustainable value for our customers and partners and increase our total addressable market.
Alibaba did not provide a detailed forecast in its press release. Analysts expect earnings per ADS of $1.40 on revenues of $11.65 billion in the company’s first fiscal quarter of 2019. For the full fiscal year ending next March, consensus estimates call for earnings per ADS of $6.54 on revenues of $54.48 billion. That estimate is well short of the 60% growth Wu is predicting — about $9 billion short.
Alibaba’s ADSs traded up around 2% in Friday’s premarket session, at $186.12 in a 52-week range of $114.00 to $206.20. The consensus 12-month price target was $217.63 per ADS before this morning’s announcement. The high price target estimate is $257.51.
24/7 Wall St.Essential Tips for Investing: Sponsored
A financial advisor can help you understand the advantages and disadvantages of investment properties. Finding a qualified financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with up to three financial advisors who serve your area, and you can interview your advisor matches at no cost to decide which one is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now.
Investing in real estate can diversify your portfolio. But expanding your horizons may add additional costs. If you’re an investor looking to minimize expenses, consider checking out online brokerages. They often offer low investment fees, helping you maximize your profit.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Editors' Picks
