FX.co ★ Alibaba Q4 Net Profit Plunges, Misses Estimates

Alibaba Group Holdings Ltd. (BABA), a leading player in the e-commerce space, announced a significant decline in its net income attributable to ordinary shareholders for the fourth quarter. The company reported a drop to 3.27 billion Chinese yuan ($453 million) from 23.52 billion yuan the previous year. Earnings per American Depositary Share (ADS) subsequently fell to 1.30 yuan ($0.18) from 9.00 yuan a year ago.

When excluding certain items, Alibaba's adjusted net income for the quarter stood at 24.42 billion yuan ($3.38 billion), down from the previous year's 27.38 billion yuan. Consequently, adjusted earnings per ADS were 10.14 yuan ($1.40), compared to 10.71 yuan last year.

In terms of earnings per share, the reported figures were $0.02, while the adjusted earnings per share came in at $1.40 for the quarter.

Market expectations by 19 analysts surveyed by Thomson Reuters had put the anticipated earnings at $1.41 per share for the quarter, typically excluding special items.

On a positive note, Alibaba's quarterly revenue saw a 7 percent increase, reaching 221.87 billion yuan ($30.73 billion), up from 208.20 billion yuan in the previous year. This exceeded analysts' expectations, which had forecast revenues of $30.39 billion.

The company's board of directors has approved a two-part dividend for fiscal year 2024. This includes an annual regular cash dividend of $0.125 per ordinary share or $1.00 per ADS, and a one-time extraordinary cash dividend of $0.0825 per ordinary share or $0.66 per ADS. Both dividends will be distributed in U.S. dollars to shareholders and ADS holders of record as of the close of business on June 13, 2024.