JD Earnings Surpass Expectations as 2Q Net Revenue Beats Estimates

JD’s net revenue for the second quarter was 287.93 billion yuan, which is a 7.6% increase from the previous year. The net revenue beat the estimated 279.14 billion yuan.
The adjusted earnings per American depositary receipts (ADRs) was 5.39 yuan, which is higher than the 4.06 yuan from the previous year and the estimated 4.90 yuan.
The fulfillment expense was 16.7 billion yuan, a 2.5% increase from the previous year, beating the estimated 16.31 billion yuan.
The adjusted Ebitda was 10.40 billion yuan, which is higher than the estimated 10.07 billion yuan.
The adjusted operating margin was 3%, an increase from the 2.1% of the previous year, but slightly lower than the estimated 3.1%.
The adjusted Ebitda margin was 3.6%, higher than the 2.7% of the previous year.
Sandy Xu, the Chief Executive Officer of JD.com, stated that the company reported a solid performance for the second quarter both financially and operationally, thanks to JD.com’s enhanced business structure and leading supply chain capabilities.
The current stock rating for JD.com stands at 45 buys, 6 holds, and 1 sell.