With the stock market dropping last week and with the tech-heavy NASDAQ entering a correction, shares of Vipshop (NYSE:VIPS) haven't fared any better as the company has seen its share price drop by more than 30% since reporting mixed second quarter earnings last month.
The company reported Q2 revenues of $3.41 billion, up 6.0% year-over-year, which was pretty much in-line with analyst estimates. On the bottom line, the company reported earnings per share of $0.27, barely missing Wall Street estimates of $0.28.
Below is a look at how Vipshop has performed over the past four quarters.
| Vipshop Earnings History | Q2 2020 | Q1 2020 | Q4 2019 | Q3 2019 |
| Revenues | $3.41B | $2.7B | $4.21B | $2.74B |
| Analyst Estimates | $3.4B | $2.57B | $4.01B | $2.65B |
| Difference | +0.3% | +5.1% | +4.9% | +3.4% |
| Earnings Per Share | $0.27 | $0.20 | $0.41 | $0.25 |
| Analyst Estimates | $0.28 | $0.13 | $0.31 | $0.16 |
| Difference | -3.5% | +53.8% | +32.2% | +56.2% |
With earnings seemingly in-line with estimates, why have shares fallen so hard? This article takes a look at what happened, takeaways from the second quarter as well as where we believe shares will trade over the coming quarters.
Q2 Takeaways
Having covered Vipshop since 2013, and with our latest article detailing Q1 earnings back in May, we were asked by several SA readers about what investors should expect going into Q2 earnings. Here's what we had to say:
With the way shares have ran since the last earnings report, VIPS will likely see a pullback after earnings, no matter what they report. For long-term shareholders, it won't matter as shares should continue to climb over time. VIPS should report strong numbers.
As expected, shares dropped, however, we didn't expect a 30% fall to take place either. After earnings came out, we were asked by readers about the recent plunge in share price and here's what
