![]() With rising revenues, profits are rising, all else equal. Not surprisingly, the earnings per share estimate implies a considerable earnings improvement on a sequential basis as well. An improvement in BABA's sales from the fiscal second quarter to the fiscal third quarter would thus be expected even without the COVID policy change tailwind, but the positive impact of China's reopening will likely translate into a more pronounced quarter-to-quarter growth rate. The 11/11 day, or Single's Day, plays a role in the fiscal third quarter being a stronger-than-average year for Alibaba and many other Chinese consumer companies. The fiscal third quarter almost always is a more active one compared to the fiscal second quarter for Alibaba due to the holiday impact (even though the Chinese New Year is in January or February). On top of that, there also is a seasonal impact at play, however. Business customers also are more active following China's reopening, thus activity increased in that segment as well. China's economic reopening has led to improving consumer sentiment, as consumers are willing to spend more when they aren't locked down and uncertain about their economic future. While the country had been following a Zero COVID approach for some time, that changed towards the end of the calendar year 2022. First, China started to reopen its economy during the most recent quarter. Analysts are currently predicting that the company will report the following results for the quarter:īoth the earnings per share estimate and the revenue estimate represent a big increase versus the results that Alibaba reported for the previous quarter, its fiscal Q2. ![]() ![]() What Can We Expect From BABA's Results?Īlibaba Group Holding Limited will report its next quarterly results on Thursday, February 23. Since Alibaba will report its next quarterly results this week, we'll take a look at what investors can expect from the report and at some items that will be important going forward. When Alibaba Group ( NYSE: BABA)( OTCPK:BABAF) reported its last quarterly results, the company beat estimates easily.
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