JD Earnings Preview, What to Expect?
Analysts’ forecast JD.com to print a revenue growth of 25.12% in the fiscal second quarter.
Khan is a professional trader and business writer with over 7 years of experience in several financial markets. Khan takes pride in sharing insightful articles with his readers that help them improve their investment portfolios.
2020-08-16 11:00

JD.com Inc. (NASDAQ: JD) is scheduled to publish its quarterly financial results on August 17th before the bell. Formerly known as 360buy, JD also said that it will offer an insight into its financial performance in the first half (H1) of the current fiscal year on Monday. 

The U.S. listed shares of JD.com ended nearly 1% down on Friday. At $62.06 per share, the e-commerce company is currently more than 60% up year to date in the stock market. The stock has mostly traded above the price at which it started the year 2020 except for briefly touching a marginally lower $35.24 per share in March. JD’s performance in the stock market was largely upbeat in 2019 with an annual gain of about 70%. At the time of writing, the B2C online retailer is valued at $97.30 billion and has a price to earnings ratio of 108.60.

Analysts’ forecasts for JD’s earnings and revenue in Q2
According to analysts, the Chinese e-commerce company is expected to print roughly $27.39 billion in revenue. In terms of earnings per share (EPS), their estimate is capped at 38 cents. JD.com announced last week that it was buying a controlling stake in a Chinese logistics company, Kuayue-Express Group. As per the report, the agreement is valued at $365 million. 

In the comparable quarter of 2019, the Beijing-based firm had generated $21.89 billion in revenue. Its per-share earnings last year came in 33 cents. If JD.com matches experts forecast in the fiscal second quarter, it will represent a 25.12% increase in revenue on a year over year basis. EPS, on the other hand, will mark a 15.5% annualized growth. 

In the prior quarter, JD’s performance was significantly stronger than what the analysts had anticipated. Also known as Jingdong, the company reported 28 cents of earnings per share and $20.65 billion of sales in the fiscal first quarter. In comparison, experts had forecast a much lower 11 cents of earnings per share and $19.29 billion of revenue. 

JD raised almost $400 billion via its secondary listing in June
Analysts anticipate JD.com to have seen a massive boost to its revenue in the recent quarter attributed to one of the largest Chinese shopping events called “618”. Held in June, JD along with its peer, Alibaba, registered an unprecedented $144 billion of sales in the mid-year shopping festival. 

As per JD.com, its transaction volume in 618 topped last year’s $30 billion and came in at $40 billion this year. The Chinese technology-driven company also resorted to a secondary listing in Hong Kong earlier this year in June. The move, as per JD’s spokesperson, was ascribed to the rising tensions between the United States and China that compelled several Chinese businesses to list closer to home.

 Alibaba’s secondary listing in November also found it a spot on the Hong Kong Stock Exchange last year. The largest Chinese e-commerce company raises a total of $11 billion from its initial public offering (IPO) in Hong Kong. In comparison, JD.com raised close to $4 billion via its secondary listing.

Disclaimer: I have no positions in any of the stocks mentioned. I wrote this article myself, and it expresses my own opinions. I have no business relationship with any company whose stock is mentioned in this article. All information should be independently verified and should not be relied upon for purposes of transacting securities or other investments. See terms for more info.

Published On
2020-08-16 11:00

About the Author
Khan is a professional trader and business writer with over 7 years of experience in several financial markets. Khan takes pride in sharing insightful articles with his readers that help them improve their investment portfolios.


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