When Alibaba Group Holding Ltd. (NYSE: BABA | BABA Price Prediction) reported its fiscal third-quarter results before the markets opened on Tuesday, the online marketplace posted $1.77 in earnings per share (EPS) and $17.06 billion in revenue. That compares to consensus estimates from Thomson Reuters of $1.68 in EPS and $17.68 billion in revenue, as well as the $1.53 per share and $11.96 billion posted in the same period of last year.
For this quarter, annual active consumers on China retail marketplaces reached 636 million, an increase of 35 million from the 12-month period ended September 30, 2018.
Mobile monthly active users on China retail marketplaces reached 699 million in December 2018, an increase of 33 million over September.
The cloud computing segment saw a massive gain in revenue for the quarter, with revenues growing 84% year over year to $962 million, primarily driven by increased spending from enterprise customers.
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The firm’s largest segment was China commerce retail, which ended the quarter with revenues of $11.79 billion, an increase of 35% year over year.
Alibaba did not issue any guidance for the fiscal fourth quarter. However, the consensus estimates call for $1.00 in EPS and $13.77 billion in revenue for the quarter.
Daniel Zhang, CEO of Alibaba, commented:
Alibaba had another strong quarter. Our resilient operating and financial performance is a direct reflection of our persistent focus on better serving our growing base of nearly 700 million consumers across retail, digital entertainment and local consumer services. Our growth is also driven by the power of Alibaba’s cloud and data technology that helps expedite the digital transformation of millions of enterprises.
Shares of Alibaba closed Tuesday at $156.88, in a 52-week range of $129.77 to $211.70. The consensus price target is $204.15. Following the announcement, the stock was up about 2% at $159.99 in early trading indications Wednesday.
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