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Alibaba shares jump on better-than-expected 2Q

FILE - In this Aug. 27, 2014 file photo, a chef walks in the headquarter campus of Alibaba Group in Hangzhou in eastern China's Zhejiang province. Alibaba Group Holding Ltd. reports quarterly financial results before the market opens on Tuesday, Oct. 27, 2015. (Chinatopix via AP, File) CHINA OUT FILE - In this Aug. 27, 2014 file photo, a chef walks in the headquarter campus of Alibaba Group in Hangzhou in eastern China's Zhejiang province. Alibaba Group Holding Ltd. reports quarterly financial results before the market opens on Tuesday, Oct. 27, 2015. (Chinatopix via AP, File) CHINA OUT

By Associated Press October 27, 2015 1 min read

NEW YORK (AP) – Chinese e-commerce powerhouse Alibaba’s second-quarter net income topped expectations as revenue surged on mobile growth.

The news reassured investors about how Alibaba is fairing in the uncertain Chinese economy. Its shares jumped 10 percent in premarket trading.

Net income after paying deferred dividends jumped to 33.75 billion Chinese yuan ($3.58 billion), or $1.40 per share, compared with 2.98 billion yuan in the prior year quarter. Excluding one-time costs such as a compensation expense, net income totaled 57 cents per share. That topped analyst expectations of 54 cents per share, according to FactSet.

Revenue rose 32 percent to 22.17 billion yuan ($3.49 billion) from 16.83 billion yuan. Analysts expected revenue of $3.35 billion. Mobile revenue more than doubled to 10.52 billion yuan ($1.66 billion), or 61 percent of total retail revenue.