BEST Inc. (BSTI) Misses Q3 EPS by 5c, Revenues Beat; Offers FY18 Revenue Guidance Below Consensus

BEST Inc. (NYSE: BSTI) reported Q3 EPS of ($0.04), $0.05 worse than the analyst estimate of $0.01. Revenue for the quarter came in at $1.05 billion versus the consensus estimate of $1.04 billion.

"BEST continued to generate strong growth in the third quarter, benefitting greatly from demand for our integrated supply chain services and solutions as a result of healthy e-commerce and New Retail growth, further industry consolidation, and our sharp strategic focus and execution," said Johnny Chou, Chairman and Chief Executive Officer of BEST. "Despite competitive market conditions, our growth continued to outpace the market thanks to our superior platform that is better equipped to capture the opportunities created by the trend towards digital commerce. BEST\'s platform, with its robust technology and nationwide services networks, enriches the lives of consumers by making possible an omni-channel shopping experience and empowers businesses by providing one-stop total supply chain solutions."

"We continued with our solid progress on the path to profitability while prioritizing growth and market shares gain. I am pleased to announce that we delivered another solid quarter. Our revenue increased by 34% year-over-year to RMB7.2 billion, with our businesses demonstrating strong growth momentum," said Alice Guo, BEST\'s Chief Accounting Officer and Senior Vice President of Finance. "For the second consecutive quarter, BEST recorded positive EBITDA and Adjusted EBITDA. Moreover, net loss was reduced by 89% year-over-year to RMB51 million, and non-GAAP net loss was reduced by 45% year-over-year to RMB101 million. As we enter fourth quarter peak season, we will continue to execute our strategy of focusing on strong top-line growth and operational efficiencies enhancement to drive margin expansion."

For the Quarter Ended September 30, 2018:

• Revenue was RMB7,189.3 million (US$1,046.8 million), an increase of 34.3% year-over-year (\"YoY\").- Express Service Revenue increased 33.4% YoY to RMB4,357.5 million (US$634.5 million).- Freight Service Revenue increased 25.0% YoY to RMB1,093.3 million (US$159.2 million). - Supply Chain Management Service Revenue increased 27.3% YoY to RMB491.6 million (US$71.6 million). - Store+ Service Revenue increased 15.3% YoY to RMB885.5 million (US$128.9 million). - Others (1) Service Revenues increased 499.9% YoY to RMB361.3 million (US$52.6 million).
• Gross Profit was RMB389.9 million (US$56.8 million), an increase of 93.3% YoY; and Gross Profit Margin was 5.4%, an improvement of 1.6 percentage points YoY.
• Net Loss was RMB51.1 million (US$7.4 million), a decrease of 89.1% YoY; and Non-GAAP Net Loss (2)(3) was RMB101.4 million (US$14.8 million), a decrease of 44.9% YoY.
• Diluted EPS (4) was negative RMB0.13 (US$0.02) and Non-GAAP diluted EPS (3)(5) was negative RMB0.26 (US$0.04).
• EBITDA (3)(6) was RMB54.7 million (US$8.0 million) and Adjusted EBITDA (3)(6) was RMB1.3 million (US$0.2 million).
• Net Cash Generated From Operating Activities was RMB86.3 million (US$12.6 million).

GUIDANCE:

BEST Inc. sees FY2018 revenue of $3.86-3.89 billion, versus the consensus of $3.92 billion.

For earnings history and earnings-related data on BEST Inc. (BSTI) click here.

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