NEW YORK (TheStreet) --Vipshop (VIPS) - Get Report shares are under pressure Thursday afternoon, down by 2.45% to $10.55, following the Chinese e-commerce giant's weak 2016 first quarter results and current quarter guidance released Tuesday afternoon.
Even though earnings of 1.04 Chinese yuan per share topped Wall Street's forecasts of 98 yuan per share, revenue of 12.17 billion yuan missed projections of 12.32 billion yuan.
Further weighing down the shares today was the company's outlook for the current quarter which signaled revenue growth is slowing.
While analysts' expectations for the company's revenue guidance of 12.7 billion yuans falls in between the company's expected range of 12.3 billion yuan to 12.8 billion yuan, the lower end of Vipshop's target was significantly lower than analysts' estimates.
Separately, Vipshop has a "hold" rating and a letter grade of C+ at TheStreet Ratings because of the company's robust revenue growth, notable return on equity and reasonable valuation levels, which offsets generally higher debt management risk, poor profit margins and a disappointing stock performance.
The company's strengths can be seen in multiple areas, such as its robust revenue growth, notable return on equity and reasonable valuation levels. However, as a counter to these strengths, we also find weaknesses including generally higher debt management risk, poor profit margins and a generally disappointing performance in the stock itself.
You can view the full analysis from the report here: VIPS