JD.com Inc. (JD) announced better-than-expected earnings and revenue for the third quarter. The company posted a profit of 7.6 billion yuan, or 4.70 yuan per American depositary shares (ADS), well above 600 million yuan, or 0.41 yuan per ADS in the comparable period last year. On an adjusted basis, profit rose to 3.42 yuan per share, beating analysts’ average estimate of 2.71 yuan per share.
Revenue for the quarter came in at 174.2 billion yuan, up 29.2 percent from the same period last year. Analysts polled by FactSet were looking for revenue of 169.72 billion yuan. JD shares fell more than 6 percent this morning despite beating consensus forecast for the quarter. Revenue from general merchandise jumped 34.8 percent to 58.1 billion yuan in the quarter, while revenue from net service climbed 42.7 percent to 22.8 billion yuan.
The Beijing-based e-commerce company said its annual active customer accounts jumped to 441.6 million for the 12-month period ended September 30, representing a surge of 32.1 percent from the 12 months ended September 30 last year.
Gross margin for the third quarter rose to 8.7 percent, as compared to 8.4 percent in the comparable period last year.
Speaking on the results, JD’s CEO Richard Liu said “today, as China emerges from the pandemic, we are glad to see that our business partners are recovering rapidly with the support of our online and offline supply chain infrastructure. And our consumer mindshare continues to expand with over 100 million new active users joining our platform compared to a year ago.”
JD shares performed well even during the pandemic. The stock has skyrocketed more than 145 percent on year-to-date basis, making it one of the lucrative investment options in the eyes of investors. At the current trading price, the company’s market value stands at nearly $131.125 billion.
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