JD.com profit: JD stock jumps 13% on Q4 Beat

<p>JD.com’s (NASDAQ: JD) earnings for the fourth quarter of 2019 have the JD share rising on Monday. It comes after reporting revenue of 170.68 billion yuan, which is above the Wall Street estimate of 166.72 billion yuan. The Chinese e-commerce giant also reported adjusted earnings per share (EPS) of 0.54 yuan, while analysts expected an adjusted earnings per share of 0.44 yuan.

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The following is what is worth mentioning from the latest JD.com results report.

Revenue for the quarter increased by 26.6% compared to 134.83 billion yuan over the same period last year. Operating profit of 529.55 million yuan is a large change compared to the previous year from operating profit of 938.9 million yuan. JD.com’s earnings report also includes a net profit of 3.55 billion yuan. This is much better than the company’s net loss of -4.88 billion yuan from the fourth quarter of 2018.

Richard Liu, Chairman and CEO of JD.com, said this about the JD share income report:

“We achieved robust peak growth during the fourth quarter as Chinese consumers increasingly associate the JD brand with trust and reliability. We also saw strong customer growth, especially in China’s lower cities, driven by innovative marketing, superior product selection and better customer service. ”

JD.com’s earnings report provides guidance for the first quarter of 2020, where the company expects net sales to “grow by at least 10% compared to the first quarter of 2019.” However, the company stated that these expectations are “subject to change” due to the effects of coronavirus.

At the same time, Wall Street expects adjusted earnings per share of 1.56 yuan to 137.32 billion yuan in the first quarter of 2020.

The JD share increased by 13% as of Monday afternoon.

At the time of writing, Nick Clarkson had no position in any of the above securities.