Bloomberg News

Dangdang Tumbles to 10-Week Low After Outlook Trails Estimates

May 17, 2012

E-Commerce China Dangdang Inc. (DANG:US) 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 (DANG:US) call today. That’s less than a median estimate (DANG:US) 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 reporter on this story: Leon Lazaroff in New York llazaroff@bloomberg.net

To contact the editor responsible for this story: Tal Barak Harif at Tbarak@bloomberg.net


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Companies Mentioned

  • DANG
    (E-Commerce China Dangdang Inc)
    • $13.6 USD
    • 0.55
    • 4.04%
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