Gigacloud Technology’s stock surges 5.9% following robust Q4 earnings, says Investing.com


Gigacloud Technology’s stock surges 5.9% following robust Q4 earnings, says Investing.com

GigaCloud Technology Inc, a global provider of B2B e-commerce solutions for large parcel merchandise, reported strong fourth-quarter earnings and revenue that exceeded analysts’ expectations. The company’s fourth-quarter earnings per share (EPS) was $0.87, beating the consensus estimate of $0.58. Revenue for the quarter also performed well, coming in at $244.7 million compared to the expected $224.15 million.
Following the announcement, the company’s stock price surged by 15.64%, although some gains were retraced, and the stock is now trading up 5.9%. In the fourth quarter of 2023, GigaCloud’s total revenues showed a substantial year-over-year (YoY) increase of 94.8%, reaching $125.6 million compared to the same quarter the previous year. The gross profit for the quarter saw significant growth as well, rising by 161.4% to $69.8 million, and the gross margin expanded from 21.2% to 28.5% YoY. The net income for the quarter also increased by 184.8% to $35.6 million, resulting in a net income margin of 14.5%.
Larry Wu, the Founder, Chairman, and CEO of GigaCloud, attributed the company’s strong performance to strategic initiatives like the integration of Noble House and Wondersign, which have expanded the company’s global presence and product offerings. Wu expressed confidence in GigaCloud’s ability to lead the industry and establish a sustainable global supply chain for large parcel merchandise.
Looking forward, GigaCloud expects total revenues to be between $230 million and $240 million for the first quarter of 2024. This projection considers current market and operational conditions, which are subject to change over time.

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