Chinese e-commerce giant JD.com (JD) topped expectations for the fourth quarter on Thursday, despite some weakness in consumer spending due to Covid-19 restrictions lifted in December. But JD shares fell during an overall tough day for stocks.
The Beijing-based company reported adjusted earnings of 70 cents per share in the US on revenues of $42.8 billion. Analysts polled by FactSet had expected JD to report adjusted earnings of 51 cents per share on revenue of $42.53 billion. Year-over-year, JD’s revenues grew 100% while sales grew 7%.
Before China ended its zero-Covid policy late last year, a surge in coronavirus cases had already disrupted consumption and order fulfillment in the world’s second-largest economy.
“While 2022 presented many challenges to JD and China as a whole, we delivered solid operational results, surpassing RMB 1 trillion ($143.6 billion) in annual revenue for the first time,” Chief Executive Lei Xu said in a press release.
“Looking forward, amid ever-changing opportunities and challenges, we will remain focused on reducing costs, increasing efficiency and constantly improving the user experience,” he added.
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 technology and services for the supply chain.
JD Stock Falls After Earnings Report
JD shares fell 11.3% to close at 41.68 in the stock market today.
On Feb. 21, shares of JD, Alibaba and PDD (formerly Pinduoduo) all fell under a report that JD planned to spend $1.5 billion to create a subsidiary that would target price-conscious consumers. That led to concerns about increasing competition and price wars.
Alibaba reported quarterly results late last month that beat estimates as the Chinese e-commerce giant also struggled with weaker demand and supply chain issues.
JD stock ranks 10th out of 58 stocks in IBD’s Retail-Internet industry group, according to IBD Stock Checkup. It has a mediocre IBD Composite Rating of 61 out of 99.
Follow Brian Deagon on Twitter at @IBD_BDeagon for more information on technical stocks, analysis and financial markets.
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