Why did MOGU's earnings per share surprise investors in Q2 2022?

MOGU's earnings per share (EPS) did not surprise investors in Q2 2022 because the company's financial results were not accompanied by any positive surprises. In fact, MOGU's Q2 2022 financial performance was lackluster, with the company reporting a GAAP EPS of -$4.28, which was largely in line with market expectations. |code|Ticker|Name|Date|EPS Surprise|Diluted EPS|market_code| |---|---|---|---|---|---|---| |MOGU|MOGU.N|Mogu|2021 Q3||-0.001532567|169| |MOGU|MOGU.N|Mogu|2021 Q4||-0.0061051924|169| |MOGU|MOGU.N|Mogu|2022 Q1||-0.0061952112|169| 1. **Revenue Decline**: MOGU's revenue for the quarter was $26.5 million, marking a significant 29.2% year-over-year decrease. This decline in revenue is a clear indicator of weakening sales and a shrinking market share, which would likely have been factored into investors' expectations. 2. **GMV Decrease**: The company's Gross Merchandise Volume (GMV) for the six months ended March 31, 2022, was $824.2 million, representing a substantial 31.4% drop compared to the previous period. This decline in GMV suggests a sharp reduction in the total value of transactions processed through the platform, which would have contributed to the negative earnings surprise. 3. **Adjusted EBITDA**: MOGU's Adjusted EBITDA for the quarter was negative $2.6 million. While this figure represents an improvement from the negative RMB18.9 million reported in the same period of the previous fiscal year, it still indicates that the company is not yet profitable and is generating significant losses. This financial performance would not have surprised investors who were likely accustomed to the company's ongoing struggles with profitability. In conclusion, MOGU's Q2 2022 earnings report did not contain any positive surprises, as the company's financial performance was largely in line with market expectations. The decline in revenue, GMV, and continued negative EBITDA figures reflect the ongoing challenges faced by MOGU and would not have surprised investors accustomed to the company's struggles.