VIPShop Holdings (VIPS) didn’t do half bad with its second quarter earnings report released on Tuesday, but investors .
The stock took a dive in the wake of its Tuesday morning earnings announcement, even though its numbers were rather strong. It was trading down about 10% for the day one hour ahead of market close.
VIPShop's net revenues increase 77.6% YOY
VIPShop reported a 77.6% year-over-year increase in net revenues to $1.45 billion (Rmb9.02 billion), 1% above Bloomberg consensus. Gross profit climbed by 78.6% to $363 million (Rmb2.3 billion), and earnings per average diluted share were 13% of consensus. The company issued better-than-expected third quarter guidance as well.
Analysts, by and large, took a rather positive view of the Chinese e-commerce company’s second quarter numbers.
“The 2Q2015 result and 3Q15 guidance are both better than expected, and we believe 3Q guidance could be conservative,” analysts at Barclays PLC () () wrote in a first look note on Tuesday.
In a separate note, they called the period “a somewhat relieving quarter” for VIPShop. They maintained their rating on the stock at overweight but...