Alibaba Q3 Profit Down, Revenues Rise; Plans Addl. $25 Bln Share Buyback; Stock Up In Pre-market

(RTTNews) - Chinese e-commerce giant Alibaba Group Holdings Ltd. (BABA) reported Wednesday that its third-quarter net income attributable to ordinary shareholders was RMB14.43 billion or $2.03 billion, down 69 percent from RMB46.82 billion last year.

The drop was primarily attributable to mark-to-market changes from equity investments and the decrease in income from operations due to the impairment.

Earnings per share were RMB0.71 or $0.10, compared to RMB2.24 last year. Earnings per ADS were RMB5.65 or $0.80, down from RMB17.91 a year ago.

Adjusted net income was RMB47.95 billion or $6.75 billion, compared to RMB49.93 billion in the same quarter of 2022. Adjusted earnings per share were RMB2.37 or $0.33, compared to RMB2.41 last year. Adjusted earnings per ADS were RMB18.97 or $2.67, compared to RMB19.26 last year.

Revenue was RMB260.35 billion or $36.67 billion, an increase of 5% from last year's RMB247.76 billion.

Analysts on average expected the company to report earnings of $2.69 per share on revenues of $36.74 billion, according to figures compiled by Thomson Reuters. Analysts' estimates typically exclude special items.

Further, the company said its board of directors has approved an increase of $25 billion to share repurchase program through the end of March 2027. Following this upsize, the company currently has $35.3 billion available under share repurchase program through the next three fiscal years.

In pre-market activity on the NYSE, the shares were gaining around 5 percent to trade at $82.11.

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