Market Overview

Why Qudian Skyrocketed 20% Thursday Morning

Why Qudian Skyrocketed 20% Thursday Morning

Shares of Qudian Inc - ADR (NYSE: QD), an online provider of small consumer credit products in China, gained more than 20 percent early Thursday morning after the company issued encouraging guidance and announced a share buyback program.

What Happened

Qudian said in a press release it expects total non-GAAP net income for the full year 2019 to be greater than RMB 3.5 billion ($508.6 million) after excluding non-recurring costs and charges. The company also reaffirmed its prior outlook that total non-GAAP net income for the full year 2018 will be greater than RMB 2.5 billion.

Due to a strong outlook, Qudian said it can add to its share buyback program. The company is now authorized to buy up to $300 million of its ADSs after already having completed $267 million in buybacks in an existing program.

Why It's Important

Encouragingly, Qudian's strong guidance comes at a time of rising tensions between the U.S. and Chinese governments and concerning economic readouts in China. The company's guidance factors in recent market conditions, macroeconomic performance indicators, the regulatory environment, customer demand, market conditions and operations.

What's Next

Qudian CEO Min Luo said the company's large and growing user base provides "strong visibility as to what we can achieve into next year." The company's guidance also reflects "confidence in our growth prospect and our continuous commitment to enhancing shareholder value," he said. 

Qudian shares were trading up 17.65 percent to $6.20 off the open Thursday. 

Related Links:

Qudian, The Latest Chinese IPO, Wins By Addressing The Underserved

Qudian And Its 'Potentially Massive' Market Opportunity

Posted-In: Min LuoNews Guidance Emerging Markets Buybacks Markets Best of Benzinga


Related Articles (QD)

View Comments and Join the Discussion!
Need corporate guidance data?
Click here to see licensing options.
Fastest Market News Application
You'll Hear It First On Pro
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Trading Daily
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Daily Analyst Rating
A summary of each day’s top rating changes from sell-side analysts on the street.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at

GE Gets Big Upgrade As Longtime JPMorgan Bear Lifts Rating

5 Biggest Price Target Changes For Thursday