China’s Alibaba beats quarterly revenue estimates, profit drops

By Thomson Reuters May 14, 2024 | 5:37 AM

(Reuters) -China’s Alibaba Group Holding beat analysts’ estimates for fourth-quarter revenue on Tuesday, as a focus on low-cost goods in response to cautious consumer spending helped boost domestic e-commerce sales in the three-month period.

Its U.S.-listed shares, however, fell about 3% in premarket trading, as profit fell about 86% in the fourth quarter.

Consumers in China have been spending carefully after the pandemic amid an economic slowdown and property slump.

Analysts expected strong growth from Alibaba’s international digital commerce arm, given its investments in building global market share and appetite among global consumers for low-cost goods from China.

Analysts expect a 39% revenue rise in the segment, according to LSEG data.

The company reported revenue of 221.87 billion yuan ($30.66 billion)in the three months ended March 31, compared with a consensus estimate of 219.66 billion yuan, according to LSEG data.

Net income in the March-quarter was 3.27 billion yuan ($451.94 million), compared with 23.52 billion yuan a year ago.

($1 = 7.2355 Chinese yuan renminbi)

(Reporting by Akash Sriram in Bengaluru and Casey Hall in Shanghai; Editing by Sonali Paul and Arun Koyyur)