• Sun. Apr 14th, 2024

Gigacloud Technology sees 5.9% spike in stock following robust Q4 results, reports Investing.com

BySamantha Johnson

Mar 15, 2024
Gigacloud Technology sees 5.9% spike in stock following robust Q4 results, reports Investing.com

GigaCloud Technology Inc, a global provider of B2B ecommerce solutions for large parcel merchandise, has reported a significant increase in fourth-quarter earnings and revenue, exceeding analyst expectations. The company’s Q4 earnings per share (EPS) of $0.87 surpassed the consensus estimate of $0.58, while revenue for the quarter reached $244.7 million compared to the anticipated $224.15 million.

Following the announcement, the company’s stock price jumped by 15.64%, though some gains have since been retraced, with the stock now trading up 5.9%. GigaCloud’s financial results for the fourth quarter of 2023 showed a noteworthy year-over-year increase in total revenues of 94.8%, reaching $125.6 million. Gross profit for the quarter also saw a significant increase, rising by 161.4% to $69.8 million, with the gross margin expanding from 21.2% to 28.5% YoY. The company’s net income increased by 184.8% to $35.6 million, resulting in a net income margin of 14.5%.

Larry Wu, Founder, Chairman, and CEO of GigaCloud, credited the company’s strong performance to strategic initiatives such as the integration of Noble House and Wondersign, which have expanded GigaCloud’s global presence and product offerings. Wu expressed confidence in the company’s ability to lead the industry and establish a sustainable global supply chain for large parcel merchandise.

Looking ahead, GigaCloud expects total revenues to range between $230 million and $240 million for the first quarter of 2024. This projection is based on the company’s current market and operational conditions, which are subject to change.

By Samantha Johnson

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