NEW YORK (TheStreet) -- Shares of Jumei (JMEI) - Get Jumei International Holding Ltd Sponsored ADR Class A Report closed up by 0.60% to $8.45 on Thursday afternoon, as the company prepares to release its 2015 third quarter financial results before the market open tomorrow.
Analysts are expecting the Beijing-based online retailer of beauty products to post a year-over-year decline in earnings and rise in revenue.
Analysts surveyed by Thomson Reuters have forecast for earnings of 10 cents per share on revenue of $298.74 million for the most recent quarter.
Last year, Jumei reported adjusted earnings of 15 cents per share on revenue of $157.7 million for the 2014 third quarter.
Separately, TheStreet Ratings team rates JUMEI INTL HOLDING LTD -ADR as a Sell with a ratings score of D. TheStreet Ratings Team has this to say about their recommendation:
We rate JUMEI INTL HOLDING LTD -ADR (JMEI) a SELL. This is driven by several weaknesses, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The company's weaknesses can be seen in multiple areas, such as its feeble growth in its earnings per share, unimpressive growth in net income, poor profit margins and generally disappointing historical performance in the stock itself.
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- JUMEI INTL HOLDING LTD -ADR's earnings per share declined by 15.4% in the most recent quarter compared to the same quarter a year ago. For the next year, the market is expecting a contraction of 4.7% in earnings ($0.43 versus $0.45).
- The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed compared to the Internet & Catalog Retail industry average, but is greater than that of the S&P 500. The net income has decreased by 10.6% when compared to the same quarter one year ago, dropping from $19.18 million to $17.14 million.
- The gross profit margin for JUMEI INTL HOLDING LTD -ADR is currently lower than what is desirable, coming in at 29.97%. It has decreased significantly from the same period last year. Regardless of the weak results of the gross profit margin, the net profit margin of 5.56% is above that of the industry average.
- Looking at the price performance of JMEI's shares over the past 12 months, there is not much good news to report: the stock is down 60.57%, and it has underformed the S&P 500 Index. In addition, the company's earnings per share are lower today than the year-earlier quarter. Turning toward the future, the fact that the stock has come down in price over the past year should not necessarily be interpreted as a negative; it could be one of the factors that may help make the stock attractive down the road. Right now, however, we believe that it is too soon to buy.
- When compared to other companies in the Internet & Catalog Retail industry and the overall market, JUMEI INTL HOLDING LTD -ADR's return on equity is below that of both the industry average and the S&P 500.
- You can view the full analysis from the report here: JMEI
Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of Jim Cramer, TheStreet or any of its contributors.