58.com Inc. (WUBA) Beats Earnings on Top and Bottom

58.com Inc. (WUBA) shares are up more than 3 percent to $43 in pre-market trading on Monday after the company reported fiscal results for the fourth quarter 2014.

China’s largest online marketplace reported earnings of $0.06 per share on revenues of $80.2 million, up 77.0% from a year ago. Analysts were expecting EPS of ($0.15) on revenues of $78.1 million. Non-GAAP net income was $5.2 million, compared with non-GAAP net income of $11.7 million in the same quarter of 2013.

For the full-year 2014, the company reported non-GAAP diluted EPS of $0.34 on revenues of $265 million, an 81.8% increase from fiscal year 2013. Non-GAAP net income was reported as $28.8 million.

“I am pleased to report another strong quarter as we successfully closed out our first full year as a public company,” commented Mr. Michael Yao, Chairman and CEO of 58.com. “Mobile traffic continued to grow at a much faster pace than PC traffic, with 66% of our traffic coming from our mobile platforms…Looking forward, we will continue to invest aggressively in R&D and marketing to extend our lead in China’s local services market.”

The company guided Q1/15 revenues of $82-$84 million, as compared to analysts’ expectations of $78.10 million.

On valuation measures, 58.com Inc. ADS shares, which currently have an average 3-month trading volume of 585K shares, trade at a trailing-12 P/E of 123.43  and a P/E to growth ratio of 4.30. The median Wall Street price target on the name is $42.00 with a high target of $54.00. Currently ticker has 1 ‘Buy’ endorsements, compared to 2 ’Holds’ and 1 ‘Sell’.

Profitability-wise, WUBA has a t-12 profit and operating margin of 13.14% and 8.69%, respectively. The $3.66 billion market cap company reported $609 million in cash vs. $113.000 in current liabilities in its most recent quarter.

WUBA currently prints a one year loss of about 22.15% and a year-to-date return of less than one percent.

58.com Inc. is a China-based online marketplace operator for local merchants and consumers. The company was founded in 2005 and is headquartered in Beijing, China.

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