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Qudian's stock plunges to pace NYSE losers after profit miss, lowered outlook
Shares of China-based credit products company Qudian Inc. plunged 20% on heavy volume toward a 7-month low in midday trading, enough to pace all NYSE-listed decliners, after the reported third-quarter earnings that missed expectations and cut its full-year outlook. Trading volume spiked to 18.8 million shares, compared with the full-day average of about 3.4 million shares. The company said net income increased to RMB1.04 billion ($146 million), or RMB3.29 a share, from RMB683.8 million, or RMB2.13 a share, in the year ago period, but below the average analyst estimate of RMB3.58 a share, according to FactSet. Revenue rose 34% to RMB2.59 billion ($362.5 million), to top the FactSet consensus of RMB2.06 billion. Total registered users grew 12% from a year ago to 78.3 million, while the number of outstanding borrowers increased 3.4% from the sequential second quarter 6.3 million. "Due to recent strategy for the company to reduce risk-taking loan balance and focus on higher quality borrowers via open-platform," Qudian cut its guidance for 2019 adjusted net income to RMB4.0 billion from RMB4.5 billion. The stock has shed 33.2% over the past three months, while the S&P 500 has gained 8.0%.
https://finance.yahoo.com/m/a4a75b1.../qudian's-stock-plunges-to.html?.tsrc=rss
Shares of China-based credit products company Qudian Inc. plunged 20% on heavy volume toward a 7-month low in midday trading, enough to pace all NYSE-listed decliners, after the reported third-quarter earnings that missed expectations and cut its full-year outlook. Trading volume spiked to 18.8 million shares, compared with the full-day average of about 3.4 million shares. The company said net income increased to RMB1.04 billion ($146 million), or RMB3.29 a share, from RMB683.8 million, or RMB2.13 a share, in the year ago period, but below the average analyst estimate of RMB3.58 a share, according to FactSet. Revenue rose 34% to RMB2.59 billion ($362.5 million), to top the FactSet consensus of RMB2.06 billion. Total registered users grew 12% from a year ago to 78.3 million, while the number of outstanding borrowers increased 3.4% from the sequential second quarter 6.3 million. "Due to recent strategy for the company to reduce risk-taking loan balance and focus on higher quality borrowers via open-platform," Qudian cut its guidance for 2019 adjusted net income to RMB4.0 billion from RMB4.5 billion. The stock has shed 33.2% over the past three months, while the S&P 500 has gained 8.0%.
https://finance.yahoo.com/m/a4a75b1.../qudian's-stock-plunges-to.html?.tsrc=rss
