E-Commerce Dangdang, Inc. Guides In-Line

Chinese Online Retailer Dangdang Pops on Earnings

Yesterday Dangdang, Inc., a leading Chinese business to consumer E-Commerce company, reported earnings for the fourth quarter and year ending 2014.

Earnings for the fourth quarter 2014 were $5.3 million.  This represents about 1.3% of total net revenues, an increase over the same quarter of 2013 when they reported 1.1% profit from total revenues.  Total profits for the full year 2014 were just over $403 million, a 27% increase over the 2013.

For the upcoming first quarter of 2015, they issued earnings guidance in-line with estimates.  However they expect to see better than expected revenue next quarter.  The consensus for revenue was $353.5 million for the first quarter, but it now expects closer to 354.8 million.

Today the stock gave back most of the gains from the upside reaction yesterday, however the thing to note for this company report is the active customer growth.  The total number of active customers reported was nearly 10 million at the end of 2014, and more than 3.5 million of those were new customers.  Combined with the expected higher revenue, the trend for increased profit margins from a year ago and the huge customer growth, this company is likely to see stellar growth in the future.