Chinese e-commerce giant JD.com (DinarThursday beat expectations for the fourth quarter despite some weakness in consumer spending due to Covid-19 restrictions that were lifted in December. But JD shares fell in morning trading.
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The Beijing-based company reported adjusted earnings of 70 cents per US share on revenue of $42.8 billion. Analysts polled by FactSet expected JD to report adjusted earnings of 51 cents per share on revenue of $42.53 billion. On an annual basis, JD profits jumped 100% while sales increased 7%.
Before China ended its coronavirus policy late last year, an increase in coronavirus cases had already disrupted consumption and order fulfillment in the world’s second-largest economy.
“While 2022 posed many challenges for JD and China as a whole, we achieved strong operating results and surpassed RMB 1 trillion ($143.6 billion) in annual revenue for the first time,” CEO Li Xu said in a statement. New release.
He added, “Looking to the future, amid ever-evolving opportunities and challenges, we will continue to focus on reducing costs, increasing efficiency, and constantly improving user experience.”
JD is one of the largest e-commerce companies in China, and competes with Ali Baba (Baba) And PDD Holdings (PDD). The company also provides supply chain technology and services.
JD shares fell after the earnings report
The Jordanian Dinar share decreased by 6.6%, near 43.90, during the morning trading on the stock exchange today.
On Feb. 21, shares of JD, Alibaba, and PDD (formerly Pinduoduo) plunged on a report that JD planned to spend $1.5 billion to create a subsidiary targeting budget-conscious consumers. This raised fears of increased competition and price wars.
Alibaba reported quarterly results late last month that beat estimates, as the Chinese e-commerce giant also struggled with weak demand and supply chain.
JD stock ranks 10th out of 58 stocks in IBD’s Retail and Internet Industry Group, according to IBD stock check. It has an average IBD composite rating of 61 out of 99.
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