Vipshop (VIPS) Stock Surged on Tuesday's Earnings Results

Vipshop (VIPS) stock closed up on Wednesday, after the company reported its 2015 third quarter financial results after the market close on Tuesday.
By Rachel Graf ,

NEW YORK (TheStreet) -- Vipshop (VIPS) - Get Report stock closed higher by 15% to $14.41 on heavy volume on Wednesday, following the release of the company's 2015 third quarter earnings results after yesterday's market close.

The Guangzhou, China-based online discount retailer posted earnings of RMB 0.76 per ADS, or 12 cents per ADS. Last year, the company posted earnings of RMB 0.47 per ADS.

Revenue rose by 63% year-over-year, to RMB 8.67 billion, or $1.36 billion. 

"Even though we are disappointed that we didn't achieve our revenue guidance for the third quarter 2015, we firmly believe that the business fundamentals and growth dynamics of our platform, in terms of orders, customers and revenues, remain solid," CEO Eric Shen said in a statement.

On Friday, Vipshop stock plunged after the company said it expected its third quarter revenue to a range between RMB 8.6 billion and RMB 8.7 billion, short of its prior forecast for between RMB 9.1 billion and RMB 9.3 billion.  The retailer cited weak sales from warmer weather as the primary reason for its lowered expectations. 

About 45.69 million shares of Vipshop were traded today, well above the company's average trading volume of roughly 13.09 million shares. 

Separately, TheStreet Ratings team rates VIPSHOP HOLDINGS LTD -ADR as a Buy with a ratings score of B-. TheStreet Ratings Team has this to say about their recommendation:

We rate VIPSHOP HOLDINGS LTD -ADR (VIPS) a BUY. This is driven by several positive factors, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its robust revenue growth, notable return on equity, impressive record of earnings per share growth and compelling growth in net income. We feel its strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated.

You can view the full analysis from the report here: VIPS

VIPS

data by

YCharts

Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of Jim Cramer, TheStreet or any of its contributors.

Loading ...