Alibaba Group Holding Limited (BABA) reported third-quarter fiscal 2024 non-GAAP earnings of $2.67 per ADS (RMB 18.97), falling short of the Zacks Consensus Estimate by 2.2%. The figure also decreased by 2% from the year-ago quarter’s reported figure in RMB terms.
Despite the miss, revenues of RMB 260.35 billion ($36.7 billion) marked a 5% increase from the year-ago quarter. However, the top line failed to meet the Zacks Consensus Estimate of $37.2 billion.
Analyst Insights and Segment Revenues
The increase in top-line performance was mainly attributed to the promising momentum across the international commerce retail business, and the strong showing across the local services and Cainiao logistics services businesses. The Digital Media and Entertainment Group segment also delivered a robust performance.
However, the sluggish growth in the China commerce business posed a major concern for the company.
Alibaba’s shares have witnessed a 30.8% decline over the past year, significantly underperforming the Zacks Retail-Wholesale sector’s return of 26.2%.
Segment-wise Revenue Breakdown
Taobao and Tmall Group (49.6% of total revenues): The segment generated RMB 129.1 billion ($18.2 billion), growing by 2% from the year-ago quarter.
Operating Details and Financial Health
In the fiscal third quarter, sales and marketing expenses were RMB 33.8 billion ($4.8 billion), up 10.3% from the year-ago quarter.
Zacks Rank & Stocks to Consider
As of now, Alibaba holds a Zacks Rank #3 (Hold). Investors seeking options within the broader retail-wholesale sector may consider better-ranked stocks like Amazon (AMZN), Fastenal (FAST), and Darden Restaurants (DRI).
