Alibaba earnings top expectations but coronavirus questions linger
Cloud business topped RMB10 billion in quarterly revenue for the first time
By Emily Bary, MarketWatch
Feb 13, 2020
Shares of Alibaba Group Holding Ltd. ticked 0.6% lower in premarket trading Thursday after the company posted better-than-expected results for its fiscal third quarter but left some unanswered questions about what impact the coronavirus outbreak could have on numbers for the current quarter and beyond.
The company posted net income of $52.3 billion Renminbi ($7.5 billion), or RMB19.55 a share, up from RMB33.1 billion, or RMB12.64, in the year-earlier period.
Adjusted earnings per share rose to RMB18.19 from RMB12.19 and came in above the FactSet consensus, which modeled RMB15.91.
Alibabaís revenue for the quarter increased to RMB161.5 billion, up from RMB117.3 billion a year earlier. The FactSet consensus was looking for RMB159.7 billion. The Chinese e-commerce giantís cloud business topped RMB10 billion in quarterly revenue for the first time.
The companyís report comes after numerous companies warned about anticipated negative impacts from COVID-19, the novel coronavirus that is believed to have originated at a food market in Wuhan, China late last year. Alibaba is likely to address the matter further on its earnings conference call, which begins at 7:30 a.m. Eastern time.
Prior to the report, Alibaba detailed some of the ways the company was working to...