Baozun Is Getting Too Cheap to Ignore
Shares of Baozun (NASDAQ: BZUN) tumbled Wednesday after the Chinese e-commerce service provider posted its second-quarter numbers. That post-earnings drop was surprising since Baozun easily beat expectations on the top and bottom lines.
Baozun's revenue rose 47% annually to RMB 1.7 billion ($248.2 million), beating estimates by nearly $24 million. Its adjusted net income climbed 46% to RMB 84.2 million ($12.3 million), or $0.21 per ADS, which beat expectations by two cents.
Baozun expects its third-quarter revenue to rise 35%-40% annually, but it didn't provide any bottom-line guidance. Analysts expect its earnings to rise more than 60%. Those are incredibly high growth rates for a stock that trades at just 22 times forward earnings.
Source Fool.com
