Shares of Uxin (NASDAQ: UXIN), the largest used car e-commerce platform in China by transactions and gross merchandise volume (GMV), are down more than 17% Thursday morning after the company reported fourth-quarter and full-year 2018 results.
Fourth-quarter transaction volume for Uxin's 2C business jumped 93.6% to 168,395 units while transaction volume for its 2B business declined 37.1% to 72,081 units, compared to the prior year. GMV increased 73.7% for its 2C business and decreased 40.2% for its 2B business. Total revenue during the fourth quarter reached RMB 1,136.7 million, or $165.6 million, which was a strong 61.6% rise compared to the prior year and topped analysts' estimates by $11.76 million. Adjusted earnings checked in at a $0.04 loss per share, which still topped analysts' estimates calling for a $0.14 loss per share.
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"More importantly, we experienced an exponential growth in cross-regional transactions, with transaction volume exceeding 10,000 used cars in December alone, and over 22,000 in the fourth quarter. This reflects the revolutionary impact of our business model on China's used car supply chain, as well as growing appreciation of Uxin's brand and services," said Kun Dai, Uxin's founder, chairman, and CEO.
It was a fairly strong quarterly result, despite some general pessimism about China's economy. Investors should take one-day price swings with a grain of salt as long as Uxin continues to produce solid top- and bottom-line gains and keeps growing its 2C business, which focuses on serving customers rather than businesses.
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