JD.com Inc (NASDAQ: JD)
JD.com stock fell after the Chinese-e-commerce firm posted weaker than expected revenue for its fiscal 2018 third-quarter. Following the results, shares of the company lost more than 5% before the opening bell in New York.
During the regular session, the stock was down 3.51% to $22.24 at 11:45 a.m. The stock has sunk by more than 47% since the beginning of the year amid trade war concerns and slowing economic growth in China.
JD Earnings & Outlook
The company beat Wall Street expectations after reporting net income of 3 billion yuan, or $400 million. revenue of $15.3 billion. Revenue for the 13-week period to September 30 was 104.8 billion yuan ($15.3 billion), up 25% from the same period last year.
Analysts were expecting had expected the company to report net income of 1.1 billion yuan on revenue of 106.09 billion yuan, according to FactSet data. Third-quarter 2018 operating loss from continuing operations totaled to 650.7 million yuan ($94.7 million), compared with 502.4 million yuan in the comparable quarter a year ago.
Looking ahead, the company expects fourth-quarter revenue to be in the range $18.7 billion and $19.4 billion or growth rate of 18% to 23 percent, which is slightly below analyst expectation of 23.5 percent.
JD Executive Comments
“We are pleased to report solid results for the third quarter, with our core JD Mall business driving consistent growth under its highly experienced management team,” said Richard Liu, Chairman and CEO of JD.com. “JD’s commitment to convenient, reliable service and high-quality, authentic products continues to translate into an increasingly loyal user base. Our ‘Retail as a Service’ strategy is also gaining traction as we provide a wide range of partners with innovative retail infrastructure solutions.”
Sidney Huang, Chief Financial Officer of JD also commented, “JD’s strategic focus on improving customer experience helped drive strong performance across the business. We will continue our disciplined strategy of investing in key technologies as we focus on optimizing operations and driving economies of scale over the coming quarters.”
JD.com, Inc. Company Profile
JD.com, Inc. is a technology driven E-commerce company. It engages in the sale of electronics products and general merchandise products, including audio, video products, and books. The company operates through the following business segments: JD Mall, and New Businesses. The JD Mall segment represents its core e-commerce business.
The New Businesses segment includes logistic services provided to third parties, technology services, overseas business, insurance and O2O. It also provides an online marketplace, whereby third-party sellers sell products to customers primarily through its websites and mobile apps.
The company offers advertising, logistics and other value-added services. JD com was founded on June 18, 1998 by Qiang Dong Liu and is headquartered in Beijing, China. – CNN Money