BITA - Bitauto: Caveat Emptor
Bitauto (BITA), a leading provider of internet content, marketing and transaction services in China's fast-growing automotive industry, recently posted its third quarter results. Although revenues were largely in line with consensus, earnings beat analyst estimates driven by better than expected savings from SG&A in 3Q18. However, analysts reduced earnings estimates for Bitauto due to rising concerns on account of a slowdown in China’s auto vehicles industry and rising competition. Despite these concerns, Bitauto continues to focus on its strategy of increasing user growth. The company released a major update to its app