Alibaba Group Holding Ltd (NYSE:BABA) stock was down today following the release of its earnings report for the fourth quarter of 2017.
During the fourth quarter of the year, Alibaba Group Holding Ltd reported earnings per share of $1.63. This is up 18% from its earnings per share reported in the fourth quarter of 2016. However, it was still bad news for BABA stock by coming in below Wall Street’s earnings per share estimate of $1.67 for the period.
Operating income reported by Alibaba Group Holding Ltd for the fourth quarter of 2017 came in at $4.00 billion. This is a 26% increase from the same period of the year prior. The company’s net income for the quarter was $3.59 billion. This is 36% higher than its net income from the same quarter of the previous year.
Alibaba Group Holding Ltd’s revenue of $12.76 billion for the quarter wasn’t a hindrance to BABA stock today. The company’s revenue for the period was up 56% from the same time last year. It also beat out analysts’ revenue estimate of $12.68 billion for the quarter.
Included in its earnings report for the fourth quarter of 2017 are plans for a stake in Ant Financial. The online retailer says that it will be taking out a 33% equity stake in Ant Financial. It says this will strengthen the relationship that was started back in 2014.
Alibaba Group Holding Ltd also says it is increase its guidance for fiscal 2018. It now expects revenue for the fiscal year to be up between 55% to 56%. The high end of its previous guidance had fiscal 2018 revenue increasing by 53%.
BABA stock was down 3% as of Thursday morning.
As of this writing, William White did not hold a position in any of the aforementioned securities.
