Earnings released today show that the Co beat estimates by $.03. Expectations were for $.15 with $56 million in revenue. GMKT came in at $.18 and 60.3 million in revs.
The stock opened the day at $21.33 and closed at $22.65. Following the earnings report, GMKT is trading at $23.49 in extended hours. Before today, I'd never heard of GMKT, which is a growing e-commerce Co based out of South Korea. A Seeking Alpha story lists a number of reasons to get interested in GMKT, but I did a little more studying.
Gmarket is supposedly expanding throughout Asia. Good if true; I need to dig for more info on this. P/E is 50, but forward P/E is just 27. PEG ratio is low at 0.68, though.
The numbers even before today's report seemed promising enough. Quarterly revenue growth of 69%, with quarterly earnings growth of 246%. Return on equity of 33%. Nice.
Profit margin (12%) and operating margin (10%) are solid. The Co has $199 million in cash and zero debt. Very nice.
Outstanding shares: 49 million with a float of only 22 mil. Short interest is just 4.4%, which may explain why the stock isn't exploding right now.
All in all, Q2 has been a happy time for the Co, which saw its shares fall precipitously after Q1. Shares hit a low of $14.76 on March 15. That gives the stock a gain of more than 60% since, but still below the all-time high of $28. "All-time" is relative, of course, since the Co has been public for only one year.
I'm not completely sold on the Co just yet, but I'm starting to fall in love.
Initial grade of Gmarket by Pupule Paul: B+. If the Co can sustain growth for consecutive quarters, the grade moves up.
Pupule Paul has no position in GMKT.
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