The U.S. stock market opened mixed, with the two of the three main indexes slipping into negative territory.
Shares of 58.com Inc. (WUBA, Financial), however, were up about 10% in morning trading on the back of the company reporting better-than-expected earnings for its second quarter. EPS of 66 cents beat expectations by 46 cents and revenue of $382.81 million beat estimates by $45.61 million and grew 28.5% year over year.
The gross margin was 90.9%, down from 91.8% in the comparable quarter of 2016. Income from operations was $86 million and non-GAAP income from operations was $105.7 million, which were both higher compared to the same period of 2016.
Net income reached $79.6 million and non-GAAP net income was $97.7 million. Moreover, basic and diluted earnings per share were 55 cents and 54 cents, respectively. Non-GAAP basic and diluted EPS were 67 cents and 66 cents, respectively.
"We are excited to report that revenues significantly exceeded the higher end of our guidance during the quarter," Michael Yao, chairman and CEO, said. "We are making solid progress in developing new and innovative products across various categories. Our mobile app traffic continues to grow rapidly and is accounting for a larger portion of our total traffic."
Gainers
Freeport-McMoRan Inc. (FCX, Financial), Advance Auto Parts Inc. (AAP, Financial), Johnson Controls International PLCÂ (JCI, Financial) and Varian Medical Systems Inc. (VAR, Financial).
Losers
Foot Locker Inc. (FL, Financial), Ulta Beauty Inc. (ULTA, Financial), Nike Inc. (NKE) and Snap-on Inc. (SNA, Financial).
Global Markets
The main European stock markets traded lower. The FTSE 100, German DAX and the French CAC 40 lost about 0.5%, while the IBEX 35 rose 0.05%.
In Asia, China’s Shanghai Composite Index and Hong Kong’s Hang Seng Index were in green territory, while Japan’s Nikkei and India’s BSE Sensex closed down.
Disclosure: The author holds no positions in any stocks mentioned.
