Shares of Qudian Inc - ADR 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
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
