Oppenheimer Maintains an 'Outperform' on E-Commerce China Dangdang (DANG); Adjusting FY12 Revenues and EPS

August 17, 2012 10:54 AM EDT Send to a Friend
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Oppenheimer maintains an 'Outperform' on E-Commerce China Dangdang (NYSE: DANG) price target of $9.50.

Analyst, Andy Yeung, said, "DANG reported 2Q12 revenue of $190M and non-GAAP earnings per ADS of ($0.23), roughly in line with consensus and above our expectations. Margins contracted y/y and q/q driven by still intense competition, mix shift toward general merchandise and higher OpEx. We expect margins to remain constrained through 2012 as DANG continues to invest in fulfillment, technology and content. Management guided 3Q12 revenue of $200M (~40% y/y growth), suggesting DANG’s continuing focus on its destination categories and executing its marketplace strategy. We’re lowering our 2012 revenue and net loss estimates modestly to reflect more conservative growth and margin assumptions."

FY12 EPS estimate raised from (1.11) to (1.05), but FY13 lowered from (1.23) to (1.25)

For an analyst ratings summary and ratings history on E-Commerce China Dangdang click here. For more ratings news on E-Commerce China Dangdang click here.

Shares of E-Commerce China Dangdang closed at $4.96 yesterday.


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