NEW YORK (TheStreet) -- Alibaba (BABA) - Get Report reported a fiscal 2016 third quarter earnings and revenue beat before the market open this morning. 

The Hangzhou, China-based e-commerce company posted adjusted earnings of 99 cents per share, a 27% increase from the year-ago period.

Revenue rose by 32% to $5.33 billion year-over-year. 

Analysts projected earnings of 88 cents per share on revenue of $5.1 billion for the most recent quarter.

Alibaba reported a strong quarter even as China's economy slows, due largely to the company's push into rural areas where more than half of the country's population lives, Bloomberg reports. Alibaba now serves 12,000 villages throughout China. 

"Alibaba is on track to gain more shoppers in rural areas and smaller cities in China," Li Yujie, an analyst at RHB Research Institute Sdn, told Bloomberg. The company finished 2015 with 407 million active buyers, 5% more than in the end of September.

Going forward, Chairman Jack Ma will focus on video content, media, on-demand services and cloud computing, Bloomberg adds. 

Shares are nonetheless down by 0.62% to $69.11 this morning after the Shanghai Composite Index dropped nearly 3% today.

TheStreet Recommends

Separately, TheStreet Ratings team rates the stock as "hold" with a ratings score of C-.

Alibaba's strengths such as its notable return on equity, robust revenue growth and largely solid financial position with reasonable debt levels by most measures are countered by the stock's generally disappointing performance in the past year.

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

TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this article's author. 

Image placeholder title

BABA

data by

YCharts