Alibaba (BABA, Financial) reported better-than-expected fiscal Q3 results, with both revenue and earnings surpassing forecasts. Shares jumped 10.64% in Thursday's pre-market session to $139.17 as of 08:19 a.m. ET following the strong earnings release.
The company posted adjusted earnings per ADS of $2.93, exceeding consensus estimates by $0.27. Revenue came in at $38.38 billion, up 8% year-over-year, beating expectations by $130 million.
Segment Highlights
- Cloud Intelligence Group: Revenue rose 13% Y/Y to $4.35 billion (RMB31.74 billion).
- Alibaba International Digital Commerce Group: Revenue surged 32% Y/Y.
- Local Services Group: Revenue grew 12% Y/Y.
- Cainiao: Revenue dipped 1% Y/Y.
- Digital Media and Entertainment Group: Revenue increased 8% Y/Y.
Income from operations soared 83% Y/Y to $5.65 billion (RMB41.21 billion), driven by lower intangible asset impairments and higher adjusted EBITA. Net cash from operations reached $9.72 billion (RMB70.92 billion), up 10% Y/Y, while free cash flow fell 31% to $5.35 billion (RMB39.02 billion).
Alibaba repurchased 119 million ordinary shares (15 million ADSs) for approximately $1.3 billion during the quarter.
