BEST Inc. (BEST) stock prices were up by 13.04% as of the market closing on August 31st, 2021. This brought the price per share up to USD$1.30 at the end of the trading day. Subsequent premarket fluctuations have seen the stock up by 4.62%, bringing it down to USD$1.36.
BEST Stock’s Strategic Refocusing Plan
The second quarter of fiscal 2021 saw BEST stock report continuing the executing of their strategic refocusing plan. This will build on the promising activity seen in network stability, service quality, and cost reduction, while adapting to a changing and competitive marketspace. Fortunately, the company finds itself in a context of supportive industry regulation, as well as strong e-commerce growth. On these bases, BEST is confident that its strategic refocusing plan will position it to deliver improved operating and financial results over the upcoming quarter.
BEST Stock’s Revenue Report
The company reported revenues in the amount of USD$1.142 billion, representing a 5% year over year decrease. This yearly difference was largely driven by a decrease in average selling price in Express and Freight business segments. This was partially offset by increases in volumes sold for both Express and Freight. Accordingly, net loss for the quarter came out to USD$72.4 million, a stark decrease from the net income of USD$6.61 million reported in the prior year quarter.
Solid Liquidity Position
BEST stock reported a stellar liquidity position at the end of the second quarter of fiscal 2021. The company reported USD$528.6 million in cash and cash equivalents, restricted cash and short term investments as of June 30th 2021. The slight year over year decrease was largely driven by the use of net cash in financing activities.
Q2 2021 SG&A Expenses
Selling, general, and administrative costs came out to USD$71 million for the second quarter of fiscal 2021, representing 6.2% of revenue. This is comparable to the USD$62.47 million SG&A expenses reported for the prior year quarter, which came out to 5.2% of revenue. This year over year increase was largely attributable to additional bad debt provision. This provision resulted from the pandemic and the lack of certain Covid-19 pandemic related subsidies that were available in 2020.
Future Outlook for BEST Stock
The company reported a promising Q2 2021, evidenced by the strength of its financial reports for the quarter. BEST stock is keen to capitalize on the momentum it has generated, with hopes to sustain it through the upcoming quarter. Investors are confident that this will result in organic increases in shareholder value over the long term.
