Dangdang Tumbles to 10-Week Low After Outlook Trails Estimates
E-Commerce China Dangdang Inc. (DANG) tumbled to a 10-week low in New York as the owner of China’s biggest Internet bookseller forecast sales that fell short of analysts’ estimates.
Shares of Beijing-based Dangdang lost 14 percent to $6.41 at 1:56 p.m. in New York. Earlier the stock touched $6.10, its lowest lowest since March 6 on an intraday basis.
Dangdang’s second-quarter revenue will rise to 1.18 billion yuan ($187 million), Chief Financial Officer Conor Yang said in an investor conference call today. That’s less than a median estimate of 1.27 billion yuan of eight analysts in a Bloomberg survey.
“Guidance was disappointing,” Adam Krejcik, an analyst at Roth Capital in Newport Beach, California, said in a phone interview. “A slowdown in the year-over-year growth rate for a company that’s burning cash and not expected to put up a positive EPS for the foreseeable future is a big problem.”
Krejcik has a neutral rating on Dangdang.
To contact the editor responsible for this story: Tal Barak Harif at Tbarak@bloomberg.net