Coupang's stock rallies on stronger-than-expected profit and revenue
By Steve Gelsi
Softbank-backed E-commerce company's stock up by 9% after it reports a 23% revenue jump.
Coupang Inc.'s stock was up by 9.1% in premarket trading on Wednesday after the Seattle-based e-commerce operator of online grocer Rocket Fresh beat analyst estimates for profit and revenue.
After the closing bell on Tuesday, Coupang (CPNG) said its fourth-quarter net income moved up sharply to $1.03 billion, or 57 cents a share, from $102 million, or 6 cents a share, in the year-ago period.
The latest period included a non-cash tax benefit of $895 million from changes in tax-related reserves.
Coupang's adjusted earnings of 8 cents a share beat the FactSet consensus estimate of 6 cents a share.
Fourth-quarter revenue rose by 23% to $6.56 billion, ahead of the analyst estimate of $6.4 billion.
"While we are pleased with the progress we made this quarter, we see even greater opportunity in front of us, as we represent just a single digit share of the vast retail spend in Korea, and even smaller in Taiwan," said Gaurav Anand, the company's financial chief, in a statement.
While Coupang is based in the U.S. it operates as an e-commerce platform in South Korea. It's been backed by Softbank Group Corp. (JP:9984) since 2015.
Mizuho USA Securities analyst James Lee on Wednesday reiterated a neutral rating on Coupang and said the company "reported a good quarter with strong top-line growth and a convincing" beat of about 20% over Wall Street estimates for earnings before interest, taxes, depreciation and amortization.
Lee said the stock is already valued at a premium and it faces headwinds from struggles of its investor Softbank, but he remains "incrementally positive about the company's category-leading position."
Prior to Wednesday's moves, the stock has risen 4.3% in 2024, compared to a 6.8% rise by the Nasdaq COMP.
-Steve Gelsi
This content was created by MarketWatch, which is operated by Dow Jones & Co. MarketWatch is published independently from Dow Jones Newswires and The Wall Street Journal.
(END) Dow Jones Newswires
02-28-24 0812ET
Copyright (c) 2024 Dow Jones & Company, Inc.-
What’s Happening in the Markets This Week
-
Worst-Performing Stock ETFs of the Quarter
-
Q3 in Review and Q4 2024 Market Outlook
-
Top-Performing Stock ETFs of the Quarter
-
September Jobs Report Forecasts Show Moderate Hiring Gains
-
Port Strike a Headache for Shippers but a Potential Tailwind for Certain US Transport Stocks
-
13 Charts on Q3′s Roller-Coaster Rally for Stocks and Bonds
-
5 Stocks to Buy Instead of Overpriced US Equities
-
Consumer Defensives: Despite Angst, Thirsty Investors Have Names to Pursue
-
Industrials: Many Stocks Overvalued After Q3 Outperformance
-
Basic Materials: Despite Index Rise, We See Multiple Long-Term Opportunities
-
What the Election Could Mean for Big Tech Stocks
-
3 Lessons From Recent Stock Market Drama
-
Consumer Cyclicals: Even Amid Moderating Consumer Spending, We See Discounts
-
Healthcare: Valuations Look Fair Overall, With Select Industries Still Undervalued
-
Utilities: Falling Interest Rates, Growth Outlook Boosting Stocks