Alibaba misses 4Q profit forecasts but earnings jump 85 pct

Published May 05, 2016

Alibaba's fiscal fourth-quarter earnings jumped 85 percent as sales volume in the Chinese e-commerce giant's home market surged, but adjusted earnings fell short of expectations on Wall Street.

Net income in the three months ending March 31 climbed to 5.36 billion Chinese yuan ($832 million) from 2.89 billion yuan. Earnings adjusted for one-time gains and costs totaled 47 cents per share, and revenue jumped 39 percent to 24.18 billion yuan ($3.75 billion.)

Analysts expected earnings of 60 cents per share on $3.59 billion in revenue, according to Zacks Investment Research.

The Hong Kong company said Thursday that gross merchandise volume in China's retail marketplace jumped 24 percent to $115 billion, compared to last year's quarter.

"We achieved strong growth in mobile users, active buyers and transactions," Chief Executive Officer Daniel Zhang said in a statement from the company.

The company also booked an $82 million loss in other income and saw both its income tax and interest expenses rise in the quarter.

Shares of Alibaba Group Holding Ltd. climbed more than 4 percent, or $3.19, to $78.97 in late Thursday morning trading, while broader indexes were nearly flat.

Alibaba shares have declined almost 3 percent since the beginning of the year.

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Elements of this story were generated by Automated Insights (http://automatedinsights.com/ap) using data from Zacks Investment Research. Access a Zacks stock report on BABA at http://www.zacks.com/ap/BABA

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Keywords: Alibaba, Earnings Report

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