Alibaba earnings top estimates; revenue is light

Nelson Ching | Bloomberg | Getty Images Employees work at Alibaba headquarters in Hangzhou, China.

Nelson Ching | Bloomberg | Getty Images
Employees work at Alibaba headquarters in Hangzhou, China.

Alibaba delivered quarterly earnings that topped analysts’ expectations on Wednesday, but revenue was light.

The Chinese e-commerce giant posted fiscal first-quarter adjusted earnings of 59 cents a share.

Revenue rose to $3.27 billion from $2.54 billion a year ago.

The drop in revenue growth came as gross merchandise volume (GMV)—the total value of goods transacted across Alibaba’s platforms—rose 34 percent, also rising at its slowest pace in more than three years.

Wall Street had expected the company to deliver adjusted earnings 58 cents a share on $3.39 billion in revenue, according to consensus estimates from Thomson Reuters.

Shares of Alibaba were lower in premarket trading immediately following the report. (Click here to track its shares.)

A move by the Chinese government to devalue the yuan on Tuesday has raised questions about a tangible slowdown in the country’s economy that could lead to impacted earnings for companies like Aliababa.

Last week the Chinese e-commerce company announced the launch of an English-version of its fake hotline. The move is meant to combat its reputation for selling knock-off products, especially after it signed exclusive deals with international retailers.

Read More Alibaba pours $4.6B into Chinese electronics retailer

Shares of Alibaba have dipped about 17 percent since its IPO last September.

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