NEW YORK (TheStreet) -- Shares of Vipshop (VIPS) were falling 11.01% to $21.10 Wednesday after the China-based online discount retailer provided a fourth quarter guidance that was in-line with analysts' estimates, and despite beating estimates for the third quarter.
Vipshop said that it expects revenue of $1.2 billion to $1.22 billion for the fourth quarter, representing year over year growth of 84% to 87%. Analysts surveyed by Thomson Reuters expect revenue of $1.21 billion for the quarter.
For the third quarter Vipshop reported earnings of 8 cents a share, beating analysts' estimates of 7 cents a share. Revenue grew 130% year over year to $882.6 million for the quarter, above analysts' estimates of $863.1 million.
TheStreet Ratings team rates VIPSHOP HOLDINGS LTD -ADR as a Hold with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:
"We rate VIPSHOP HOLDINGS LTD -ADR (VIPS) a HOLD. The primary factors that have impacted our rating are mixed -- some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its robust revenue growth, notable return on equity and impressive record of earnings per share growth. However, as a counter to these strengths, we also find weaknesses including generally higher debt management risk and poor profit margins."
You can view the full analysis from the report here: VIPS Ratings Report