Why E Commerce China Dangdang Inc (ADR) Stock Popped Today

By Markets Fool.com

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

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What:Shares ofE Commerce China Dangdang Inc (ADR)were up 13% as of 1 p.m. Tuesday after the company released solid unaudited fourth-quarter results.

So what:Quarterly net revenue climbed 27% year over year to $403.7 million, which translated to a 51.4% increase in net income to $5.3 million, or $0.06 per diluted American depositary share.Analysts, on average, were expecting the same per-share earnings on slightly lower sales of $402.6 million.

In addition, Dangdang expects current-quarter revenue to grow 28% year over year to RMB 2.2 billion, or $355 million based on current exchange rates. Wall Street would have settled for 26.6% growth to $353.5 million.

Now what:Today's top-line beat wasn't exactly huge, but it was also a relief considering investors were worried after Dangdang rescheduled its earnings call earlier this month due to what it described as a "scheduling issue."Shares declined more than 8% that day on speculation of negative news following the release.

In any case, while I'm not personally compelled to buy Dangdang today with shares trading around 53 times trailing-12-month earnings, I can't blame the market for temporarily bidding up the stock given its modest beat.

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The article Why E Commerce China Dangdang Inc (ADR) Stock Popped Today originally appeared on Fool.com.

Steve Symington has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.