Lightinthebox Holding Q1 Earnings: Revenues Beat Guidance

Small cap China based online retailstockLightinthebox Holding Co (NYSE: LITB) reportedQ1 2017 earnings as net revenues increased 8.0% to $72.7 million (above the high end of the Company’s guidance of $72.0 million). Net revenues from product sales were $64.8 million versus$61.9 million and net revenues from service and others were $7.9 million versus $5.4 million in the same quarter of 2016. As a percentage of net revenues, service and others accounted for 10.9% during the first quarter of 2017. Total orders of product sales were 1.6 million for the first quarter of 2017 versus1.7 million in the same quarter of 2016 while the total number of product sales customers was 1.2 million versus 1.4 million.

The net loss was $2.4 million versusa net loss of $2.1 million.As of March 31st, the Company had cash and cash equivalents and restricted cash of $85.1 million versus $91.1 million as of December 31, 2016. For the second quarter of 2017, the Company expects net revenues to be between $76.0 million and $79.0 million for an increase of 15.8% to 20.3% year-over-year.

The Chairman/CEO commented:

“We are pleased to see that revenue exceeded the high-end of our guidance and grew on a year-over-year basis for the second consecutive quarter. Our success this quarter was a direct result of our persistence and the effectiveness of our strategy to improve our business through strengthened supply chain management, better product quality, and higher customer satisfaction.”

In January, our Under the Radar Moversnewsletter hadsuggested Lightinthebox Holding as a long/buy trade based on its technical:

LITB has been on our watchlist for a while now, but gave us that clinching signal today. That is, after pushing up and off an entanglement of moving average lines (which made a few bullish crosses this week, by the way), LightintheBox has finally started to make higher highs.

There’s not a lot of volume behind today’s move… one of the few concerns we have about the LITB trade here. But, given how well the technical foundation has been laid around $2.80, we see a lot more upside with LightintheBox than downside.

However, a technical chart for Lightinthebox Holding shows a subsequent breakdown on the technical chart with shares falling below a support level:

A long term performance chart shows shares of Lightinthebox Holding underperforming large capChinese online peersAlibaba Group Holding Ltd (NYSE: BABA) and JD.Com Inc (NASDAQ: JD) while mid cap Vipshop Holdings Ltd (NYSE: VIPS) had been a homerun a few years ago:

Finally, here is a quick recap of mid cap Lightinthebox Holdings recent earnings history along with EPS estimate trends from the Yahoo! Finance analyst estimates page going into the current earnings report:

EPS Est. 0.25 0.64 0.46 0.29
EPS Actual 0.28 0.69 0.48 0.31
Difference 0.03 0.05 0.02 0.02
Surprise % 12.00% 7.80% 4.30% 6.90%
EPS TrendCurrent Qtr. (Aug 2017)Next Qtr. (Nov 2017)Current Year (2017)Next Year (2018)
Current Estimate 0.62 0.82 2.07 2.43
7 Days Ago 0.62 0.82 2.07 2.43
30 Days Ago 0.62 0.82 2.07 2.43
60 Days Ago 0.62 0.81 2.08 2.43
90 Days Ago 0.62 0.8 2.07 2.4