Impressive Results
Coupang Inc.’s stock skyrocketed by 9.1% in premarket trading on Wednesday following the outstanding performance of the Seattle-based e-commerce operator of online grocer Rocket Fresh. The company surpassed analyst estimates for both profit and revenue, showcasing significant growth.
In its fourth-quarter report released after the closing bell on Tuesday, Coupang disclosed a substantial increase in net income to $1.03 billion, equivalent to 57 cents per share, compared to $102 million, or 6 cents a share, in the year-ago period. This remarkable surge was partly attributed to a non-cash tax benefit of $895 million resulting from changes in tax-related reserves.
Strong Financials
Coupang’s adjusted earnings of 8 cents per share surpassed the FactSet consensus estimate of 6 cents per share. Moreover, the company reported a 23% increase in fourth-quarter revenue to $6.56 billion, exceeding the analyst estimate of $6.4 billion.
Gaurav Anand, Coupang’s financial chief, expressed optimism about the future, stating, “While we are pleased with the progress we made this quarter, we see even greater opportunity in front of us.”
Analyst Insights
Mizuho USA Securities analyst James Lee maintained a neutral rating on Coupang, acknowledging the company’s strong top-line growth and significant beat over Wall Street estimates for earnings before interest, taxes, depreciation, and amortization. Despite facing challenges from its investor Softbank, Lee remains cautiously optimistic about Coupang’s market position.
Ongoing Success
Coupang, although U.S.-based, thrives as an e-commerce platform in South Korea and has been supported by Softbank Group Corp. since 2015. As of the latest update, the stock had recorded a 4.3% increase in 2024, compared to a 6.8% rise by the Nasdaq COMP index.
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