Alibaba Earnings: BABA Stock Ticks 2% Lower Despite Q1 Beats

Fiscal year 2020 first quarter earnings for ecommerce giant Alibaba (NYSE:BABA) have BABA stock ticking lower on Thursday. That’s despite adjusted earnings per American Depositary Share (ADS) of $2.10 coming in above Wall Street’s estimate of $1.99. Revenue of $21.76 billion also beat out analysts’ estimates of $21.34 billion.

Alibaba Group (BABA) headquarters sign located in Hangzhou China
Source: Kevin Chen Photography /

Additionally, the company reported GAAP earnings per ADS of $2.46.

Here’s a more thorough look at the most recent Alibaba earnings report:

  • Adjusted earnings per ADS were up 14.8% compared to $1.83 during the same time last year.
  • Revenue for the quarter came in 30% above the $16.74 billion in the first quarter of 2019.
  • Operating income of $4.91 billion is a 38.3% increase from $3.55 million year-over-year.
  • The Alibaba earnings report also has the company bringing in a net income of $6.57 billion.
  • That’s a 135.5% increase compared to net income of $2.79 billion in the same period a year prior.

Daniel Zhang, chairman and CEO of Alibaba, had this to say about the BABA stock earnings:

“Alibaba delivered excellent results this past quarter. We were well positioned to capture growth from the ongoing digital transformation, which has been accelerated by the pandemic, in both consumption and enterprise operations. We mobilized our entire digital infrastructure to support the economic recovery of businesses across a wide range of sectors, while broadening and diversifying our consumer base by addressing their changing preferences in a post-COVID 19 environment. Despite these unusual times, we remain focused on the long term, on fulfilling our mission, and on creating true value for our consumers and business customers.”

That said, the company did not include FY2020 guidance. However, we know what Wall Street is looking for. Analysts are calling for EPS of $8.74 on revenue of $95.88 billion for the year.

BABA stock was down 2% as of Thursday morning.

Nick Clarkson is a web editor at InvestorPlace. As of this writing, he did not hold a position in any of the aforementioned securities.

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