Retail

What Is Lifting JD.com Stock After Its Q2 Report

JD.com Inc. (NASDAQ: JD) reported its most recent quarterly results before the markets opened on Monday. The Chinese e-commerce company said that it had $0.50 in earnings per share (EPS) and $28.5 billion in revenue, while consensus estimates had called for $0.38 in EPS and $27.45 billion in revenue. The second quarter of last year reportedly had EPS of $0.32 and revenue of $21.47 billion.

During the most recent quarter, total revenues increased 33.8% year over year. This consisted of net revenues from the sales of general merchandise products increasing 45.4% to $9.1 billion and net service revenues increasing 36.4% to $3.2 billion.

Annual active customer accounts increased by 29.9% to 417.4 million in the 12 months ended June, up from 321.3 million in the 12 months ended June 2019. Mobile daily active users in June increased by 40% year over year.

Also in June of this year, the company successfully listed on the main board of the Stock Exchange of Hong Kong under the stock code 9618, with a global offering of 152,912,100 new class A ordinary shares. The Hong Kong-listed shares are fully fungible with JD.com’s American depositary shares (ADSs) listed on the Nasdaq Stock Exchange, based on the ratio of two ordinary shares per ADS.

JD.com plans to use the net proceeds from the June offering to invest in key supply chain-based technology initiatives to further enhance customer experience and improve operating efficiency.

At the end of the quarter, cash and cash equivalents, restricted cash and short-term investments totaled $17.8 billion.

The company offered no guidance in the release. However, analysts are calling for $0.38 in EPS and $24.01 billion in revenue for the third quarter. For the full year, analysts expect to see $1.32 per share and $102.91 billion.

JD.com stock traded up about 2% early Monday at $63.35, in a 52-week range of $27.47 to $69.18. The consensus price target is $67.54.