JD.com’s stock surges after profit, revenue rise above expectations

/ / News

Shares of JD.com Inc. surged 4.5% in premarket trading Monday, after the China-based e-commerce company reported a second-quarter profit and revenue that rose above expectations, as active customer accounts showed continued improvement. Net income rose to RMB16.4 billion ($2.3 billion), or RMB10.47 per American depositary share, from RMB600 million, or RMB0.36 per ADS, in the year-ago period. Excluding non-recurring items, adjusted earnings per ADS rose to RMB3.51 from RMB230, above the FactSet consensus of RMB2.71. Revneue rose 33.8% to RMB201.1 billion ($28.5 billion) to beat the FactSet consensus of RMB190.81 billion, as net produce revenue increased 33.5% and net service revenue grew 36.4%, while cost of revenue rose 34.5%. Annual active customer accounts grew 29.9% to 417.4 million in the 12 months ended June 30, up from 387.4 million in the first quarter. Mobile daily active users grew 40% in June. “Our scale advantages and cost efficiency enabled us to provide attractive prices during our June 18 sales promotions, benefiting consumers and society as China’s economy emerges from the difficult pandemic period, and helped drive solid top and bottom line results for the second quarter,” said Chief Financial Officer Sandy Xu. The stock has run up 76.2% year to date through Friday, while the iShares MSCI China ETF has climbed 12.8% and the S&P 500 has gained 4.4%.
Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.