Key Takeaways

  • Alibaba’s adjusted EPS beat analyst expectations.
  • Revenue also beat estimates.
  • Alibaba’s annual active consumers rose 28.3 million to approximately 1.3 billion.
Alibaba Earnings Results
MetricBeat/Miss/MatchReported ValueAnalysts’ Prediction
Adjusted EPSBeatRMB 7.95RMB 6.11
RevenueBeatRMB 204.1BRMB 199.5B

Source: Predictions based on analysts’ consensus from Visible Alpha

Alibaba (BABA) Financial Results: Analysis

Alibaba Group Holding Limited (BABA) reported Q4 FY 2022 earnings that surpassed analysts’ consensus estimates. Adjusted earnings per share (EPS) beat analysts’ expectations but were down 23.0% year over year (YOY) to RMB 7.95 ($1.18). Note that Alibaba shares referred to throughout this story represent NYSE-listed American depositary shares (ADS) with the ticker “BABA.” Revenue also came in above analyst forecasts, rising 8.9% compared to the year-ago quarter.

The company’s shares rose more than 4% in pre-market trading. Over the past year, Alibaba’s shares have provided a total return of -61.0%, well below the S&P 500’s total return of -5.9%.

Alibaba’s growth has been slowing amid the Chinese government’s crackdown on big tech. Business is also seeing an impact from the government’s COVID Zero policy, which is adversely affecting the economy. The country’s industrial output and consumer spending recently fell to their worst levels since the start of the pandemic amid lockdowns and other restrictions.

Alibaba said that since mid-March 2022 its domestic businesses have been significantly affected by the resurgence of COVID-19 in China. Because of the uncertainty associated with this resurgence, the company opted not to provide any forward guidance for the next quarter or upcoming fiscal year.

Alibaba’s next earnings report (for Q1 FY 2023) is expected to be released on Aug. 18, 2022.

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