NEW YORK (TheStreet) -- Shares of E-Commerce China Dangdang Inc. (DANG) are falling by 13.56% to $8.86 on heavy volume in early afternoon trading on Thursday, after the China-based business to consumer e-commerce company reported an earnings loss for the 2015 first quarter.
For the most recent quarter the company, more commonly known as Dangdang, posted a net loss of 12 cents per ADS, while analysts were expecting a net income of 4 cents per ADS.
Total revenue for the first quarter of 2015 grew by 27.7% to $357.7 million, just above the $355.78 million analysts had forecast.
Despite the quarterly loss Dangdang is pleased with its financial results for the quarter, having achieved what it says is "strong top line growth."
"Although we posted a loss for the quarter, it was primarily the result of marketing and technology initiatives and expenditures related to e-books, mobile and content that we believe set the stage for the future healthy development of our business," Peggy Yu Yu, executive chairwoman of Dangdang said in a statement.
So far today, 3.23 million shares of Dangdang have exchanged hands as compared to its average daily volume of 1.03 million shares.
Separately, TheStreet Ratings team rates E-COMMERCE CH DANGDANG -ADR as a Hold with a ratings score of C-. TheStreet Ratings Team has this to say about their recommendation:
"We rate E-COMMERCE CH DANGDANG -ADR (DANG) 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 compelling growth in net income, robust revenue growth and reasonable valuation levels. However, as a counter to these strengths, we find that the company's profit margins have been poor overall."