2 Stocks Decline Thursday
- By Omar Venerio
Shares of Vipshop Holdings Ltd. (VIPS) fell more than 13% on Thursday after announcing fourth-quarter results. The company posted earnings of 19 cents per share on $3.8 billion in revenue, reflecting 2.7% growth from the prior-year quarter. The company beat earnings estimates by 2 cents, but fell $80 million short of revenue expectations.
During the quarter, the g ross profit rose 2.8% year over year to 5.4 billion yuan ( $783.1 million) from 5.2 billion yuan in the same quarter a year ago. F or the full year , the gross profit increased 4.8% to 17.1 billion yuan from 16.3 billion yuan .
Warning! GuruFocus has detected 2 Warning Sign with VIPS. Click here to check it out.
The intrinsic value of VIPS
" During this quarter, our total active customers grew by 13% year over year, which is a testament of the effectiveness of our merchandising strategy," Chairman and CEO Eric Shen said. "Going forward, we will continue to strengthen our core capabilities, aiming to bring highly desirable selections of products to our valued customers on a daily basis, which will drive our long term growth and profitability."
Further, t otal operating expenses were 4.6 billion yuan, up from 4.4 billion yuan in the prior-year period. But a s a percentage of total net revenue, they declined 90 basis points to 17.5% when compared to the year-ago period.
Looking ahead to the first quarter of 2019, Vipshop expects total net revenue to be in the range of 19.9 billion yuan to 20.9 billion yuan, a 0% to 5% year-over-year growth rate.
During the quarter, Ray Dalio (Trades, Portfolio) increased his positon 7.3% to 58,496 shares, Mason Hawkins (Trades, Portfolio) boosted his stake 26.16% to 2,652,306 shares and Paul Tudor Jones (Trades, Portfolio) added 42.54% to his holding, bringing it to 243,356 shares.
Shares of Domino's Pizza Inc. (DPZ) lost more than 9 % on Thur s d ay after the company announced fourth -quarter earnings of $2.62 per share on $ 1 . 08 b illion in revenue, reflecting 2 1 . 1 % year-over-year growth . The company fell short of earnings estimates by 7 cents and revenue expectations by $10 million.
The board of directors also declared a quarterly dividend of 65 cents per share, an increase of 18% over the previous distribution.
Steven Cohen (Trades, Portfolio) opened a new position of 3,620 shares during the final quarter of 2018. Ken Fisher (Trades, Portfolio) increased his stake by 6.75% to 1,065,361 shares.
Disclosure: The author holds no positions in any stocks mentioned.
This article first appeared on GuruFocus.
Warning! GuruFocus has detected 2 Warning Sign with VIPS. Click here to check it out.
The intrinsic value of VIPS
