JD.com Expected to Post Higher Third-Quarter Revenue, Net Profit - Earnings Preview

Dow Jones
2024/11/12

JD.com is scheduled to report results for the third quarter on Thursday. Here is what you need to know:

NET PROFIT: The Chinese e-commerce giant's net profit is expected to rise 20% to 9.45 billion yuan, equivalent to $1.31 billion, according to the consensus estimate of 13 analysts in a FactSet poll. That would compare with 7.9 billion yuan in the year-earlier period.

REVENUE: The Beijing-based company's third-quarter revenue is estimated at 262.63 billion yuan, according to FactSet, up 6% from a year earlier.

JD.com's Hong Kong-listed shares rose 62% in the third quarter. China's stimulus package in late September boosted stocks across various sectors, helping the Hang Seng Index rise 16% in the last five trading sessions of that month. Year to date, the stock is up more than 30%, outperforming the broader market's 18% gain.

WHAT TO WATCH:

--APPLIANCE DEMAND: JD.com's top-line growth is expected to benefit from improved appliance sales, supported by the government's trade-in program that began earlier this year, Citi analysts led by Alicia Yap said in a recent note. Demand for home appliances has been trending better since September, which could drive a stronger-than-expected performance for the quarter, Citi said.

--COMPETITIVE LANDSCAPE: JD.com's position in the e-commerce market is becoming more favorable as the competitive landscape stabilizes, CCB International analyst Cathy Chan said in a note. The company's high exposure to electronics and appliances makes it well positioned to gain from any additional government stimulus to boost domestic demand, Chan said.

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