JD.com Unveils Guidance as Second-Quarter Sales, Earnings Smash Expectations

Chinese e-commerce major JD.com (JD) unveiled fresh guidance on Tuesday as it posted better-than-expected results for its fiscal second-quarter which were supported by double-digit growth in net product and net service revenues.

The Beijing-based company, which has more than 179,000 full-time employees, reported revenue of 150.3 billion renminbi ($21.27 billion) in the three months ended June 30, up 22.9% from the corresponding quarter of the prior year. This was comfortably ahead of the consensus estimate of analysts polled by Capital IQ for 147.4 billion renminbi.

Net product revenues increased by 20.8%, while net service revenues increased by 42.0%. The results were also supported by an increase in annual active customer accounts to 321.3 million in the 12 months ended June 30, 2019 from 310.5 million in the twelve months ended March 31, 2019.

Adjusted earnings per American Depository Share surged to 2.30 renminbi from 0.33 renminbi a year earlier. The result sailed past analysts’ estimates for 0.54 renminbi per American depository share.

“JD.com delivered robust growth in the second quarter across our key metrics of revenue, profitability, cash flow and customer base,” Sidney Huang, chief financial officer of JD.com, said. “Our economies of scale and innovative technologies are driving operating efficiency and further strengthening our business model. Looking ahead, we will continue to invest in user experience and our talented workforce to further grow the business and create value for all of our stakeholders,” he added.

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