From Nasdaq: 2024-05-15 12:25:00

Alibaba Group Holding Limited reported fourth-quarter fiscal 2024 non-GAAP earnings of $1.40 per ADS, beating estimates by 12.9%. Revenues of $30.73 billion rose 7% year-over-year, driven by international commerce, local services, and logistics. However, the Digital Media and Entertainment segment underperformed. Operating details showed increased expenses and decreased operating income and EBITDA. Cash flow decreased, with a Zacks Rank of 5 (Strong Sell).

Revenues from the Taobao and Tmall Group grew 4% to $12.9 billion, driven by China commerce retail and wholesale. Alibaba International Digital Commerce Group revenues rose 45% to $3.8 billion, with strong growth in international commerce retail and wholesale. Local Services Group revenues increased 19% to $2.03 billion, while Cainiao Smart Logistics Network saw a 30% increase to $3.4 billion.

Operating details showed increased sales and marketing expenses, flat general and administrative expenses, and decreased product development expenses. Operating income declined by 3%, with an operating margin of 6.7%. Adjusted EBITDA also decreased by 4%. Cash and cash equivalents decreased to $34.4 billion, with short-term investments totaling $36.4 billion. Cash flow from operations decreased to $3.2 billion.

Alibaba currently carries a Zacks Rank of 5 (Strong Sell). Investors interested in the retail-wholesale sector can consider better-ranked stocks like The Gap, AutoZone, and Casey’s General Stores. The Gap has gained 6.8% year-to-date, with a long-term earnings growth rate of 12%. AutoZone has gained 50.7% year-to-date, with an estimated long-term growth rate of 13.24%. Casey’s has gained 23.6% year-to-date, with an anticipated long-term growth rate of 9.74%.



Read more at Nasdaq: Alibaba (BABA) Q4 Earnings Beat Estimates, Revenues Rise Y/Y