Missfresh Ltd. (MF), an online-and-offline integrated on-demand retail business, has surged 14.46% in the premarket trading session. Consequently, MF is trading at $4.75 at the time of the writing. The surge could be attributed to the announcement of financial results. On Thursday, MF closed the day at $4.15 after declining 1.19% during regular trading hours.
Top 5 Tech Stocks to Buy in 2024
Don't let the chaos of rising interest rates, potential recession, tighter credit issues, higher oil prices, and incessant geopolitical issues chase you from the markets. Instead, just wait it out. With too much fear in the market, go bargain hunting with tech stocks. We have complied a report with the five of the best ways to profit within this industry.
"Top 5 AI Stocks to Buy in 2024."
Click here to sign up for our free report & newsletter, plus bonus offer "Elon Musk just Tiggered a BOOM in These Stocks"
Sponsored
Why MF Surging?
In the late hours of Thursday, MF released the financial results for the third quarter of the fiscal year 2021. The company had cash and cash equivalents of $337.09 million on 30th September 2021. The total net revenue generated by the company during the period was $329.31 million against $225.83 million for the same period of 2020. The total costs and operating expenses for the period were $479.97 million against $302.45 million for the same period of 2020. The company suffered a net loss of $151.12 million (or $0.22 per basic and diluted share) against $75.65 million (or $0.95 per basic and diluted share) for the same period of 2020.
Financial Outlook
MF also reported the financial outlook for the upcoming quarter alongside releasing the financial results. The company expects that for the fourth quarter of 2021, it expects that net revenue to stand between $349 million to $362 million. That would represent a year-on-year increase of 35% to 40%. The company also expects that the non-GAAP operating margin would improve by 800 to 1000 basis points on a quarter-over-quarter basis.
Executive Commentary
Ms Catherine Chen, Chief Financial Officer of MF, while commenting on the results said that the company’s revenue grew outstandingly in the quarter. He further said that the company is heightening its focus on customer values and improving its margins. The company anticipates continued top-line growth and improved unit economics in the upcoming quarters.
What’s Ahead for MF?
During the last three months, MF has declined more than 13%. With the tremendous quarterly results, however, the effects of decline have started to mitigate. Analysts are hopeful that the company is in a good position to build upon this momentum in upcoming quarters.
