Alibaba Earnings Preview: What To Expect From Fiscal Q4 Results?

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Alibaba Group

Alibaba (NYSE:BABA) is scheduled to announce its fiscal Q4 2018 earnings on May 4. The e-commerce giant has reported strong year-over-year growth in revenues across segments over the last few years, with recent acquisitions further fueling growth. Alibaba’s impressive performance across segments, and the company’s forays into multiple markets have had a positive impact on shareholders, which led its stock price to rally last year. The positive sentiment has continued in fiscal 2018 as well, with strong revenue growth across segments.

While the company has been successful in capturing a significant portion of the domestic online retail market (which is a ¥6.6 trillion or just over $1 trillion market), Alibaba intends to foray into offline retail as well in the coming years. This should help drive growth in the long run. In the near term, the company’s solid revenue growth is expected to continue to drive results. At the end of Q3’17, Alibaba’s management provided solid guidance for full year results. Net revenues are expected to be up 55-56% for the year to ¥245 billion ($39 billion). We forecast adjusted EBITDA margins to be slightly lower than comparable prior year levels at just over 46%. We have created an interactive analysis where we have summarized our expectations for Alibaba’s combined full year results for FY’18. If you disagree with our forecasts, you can change expected segment revenue and EBITDA margin figures for Alibaba to gauge how it will impact expected EPS for the full year.

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See Our Full Analysis For Alibaba

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