South Korea's Coupang Q3 revenue beats estimates

Overview

• South Korea e-commerce firm's Q3 revenue rose 7% yr/yr, beating analyst expectations

• Gross profit margin fell due to fulfillment center fire-related costs in Korea

• Company repurchased $201 mln in shares during the quarter

Outlook

• Coupang did not provide specific financial guidance for the current or future periods in its press release

Result Drivers

• FULFILLMENT CENTER FIRE - Co said gross profit and operating income were negatively affected by costs related to a fire at its Incheon fulfillment center in Korea

• DEVELOPING OFFERINGS GROWTH - Net revenues in the Developing Offerings segment rose 23% yr/yr, with adjusted EBITDA losses narrowing by $23 mln

• PRODUCT COMMERCE CUSTOMER GROWTH - Product Commerce Active Customers increased 2% yr/yr, with net revenues per active customer up 3%

Company press release:

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 13 "strong buy" or "buy", 3 "hold" and 1 "sell" or "strong sell"

• The average consensus recommendation for the department stores peer group is "buy"

• Wall Street's median 12-month price target for Coupang, Inc. is $23.00, about 56.5% above its November 2 closing price of $14.70

• The stock recently traded at 82 times the next 12-month earnings vs. a P/E of 104 three months ago

Reuters Recommended Reads

• Nov 3 - Shopify Q3 revenue rises 32%, GMV hits $119 bln

• Nov 3 - Retailer Zalando beats quarterly sales expectations as it taps on AI agents

• Nov 3 - Online fashion retailer Boozt Q3 revenue rises on wider assortment

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)