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Gigacloud Technology stock up 5.9% on strong Q4 results

EditorRachael Rajan
Published 2024-03-15, 10:28 a/m
© Reuters.

EL MONTE - GigaCloud Technology Inc (NASDAQ:GCT), a global provider of B2B ecommerce solutions for large parcel merchandise, reported a significant surge in its fourth-quarter earnings and revenue, surpassing analyst expectations.

The company's Q4 earnings per share (EPS) came in at $0.87, which was $0.29 higher than the consensus estimate of $0.58. Revenue for the quarter was also robust, reaching $244.7 million against the anticipated $224.15 million.

The company's stock price leaped by 15.64% following the announcement, though some gains have been retraced and the stock is now trading up 5.9%.

GigaCloud's financial results for the fourth quarter of 2023 showed a remarkable year-over-year (YoY) increase in total revenues by 94.8%, up from $125.6 million in the fourth quarter of the previous year. Gross profit for the quarter also saw a significant rise, jumping 161.4% to $69.8 million, with the gross margin expanding from 21.2% to 28.5% YoY. The company's net income followed suit, increasing by 184.8% to $35.6 million, resulting in a net income margin of 14.5%, up from 9.9% in the same quarter last year.

Larry Wu, Founder, Chairman, and CEO of GigaCloud, attributed the company's strong performance to its strategic initiatives, including 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 create a sustainable global supply chain for large parcel merchandise.

Looking ahead, GigaCloud expects its total revenues to be between $230 million and $240 million for the first quarter of 2024. This projection reflects the company's current market and operational conditions, which are subject to change.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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