Shares of 58.com fall 12% after the company gives disappointing guidance
Shares of online marketplace 58.com plunged more than 14 percent on Thursday after investors were disappointed with its weak fiscal third-quarter guidance.
The Beijing-based company said it sees current-quarter revenue between $304 million and $311 million, far below Wall Street expectations of $343 million, according to a consensus estimate from Thomson Reuters.
CEO Michael Yao said, however, that the company remains optimistic about its growth potential.
"Despite the slowdown in China's economy, we continue to see overall growth in user and merchant numbers, as well as revenues," he said in a statement. "We believe there is still significant room for growth as businesses shift from offline to online, whether it be consumers searching for information or merchants using the internet to market their services and attract potential customers."
The company also reported adjusted second-quarter earnings of 15 cents a share on $297.8 million in revenue. Analysts had expected 58.com to post a quarterly loss of 11 cents a share on revenue of $303.2 million, according to a Thomson Reuters consensus estimate.
The stock is down more than 30 percent so far this year.