JD.com's Second-Quarter Profit Likely Rose

Dow Jones
08/11
 
 

JD.com is scheduled to report second-quarter results on Thursday. Here's what you need to know:

 

NET PROFIT FORECAST: The Chinese e-commerce company's net profit is forecast to have risen 8.6% to 6.71 billion yuan, equivalent to $994.4 million, according to the consensus estimate of 11 analysts in a FactSet poll. That would also beat the 5.10 billion yuan recorded in the first quarter.

 

REVENUE FORECAST: The Beijing-based company's quarterly revenue is estimated to have fallen 4.7% to 339.93 billion yuan, according to the FactSet poll.

 

JD.com's Hong Kong-listed shares slid 12% during three months ended June, and have jumped 28% since then. Year to date, shares are 14% higher.

 

WHAT TO WATCH:

--FOOD DELIVERY: JD.com's earnings likely recovered in the second quarter, largely due to a narrowing of food-delivery losses, said HSBC analysts in a research note. HSBC estimates second-quarter food delivery losses to have narrowed "meaningfully" from a peak of 13 billion yuan in 2Q 2025 to less than 6 billion yuan in 2Q 2026. The improvement is likely to be sustained as promotions for food delivery ease and monetization accelerates, HSBC said.

--RETAIL: The second quarter was a challenging period for the Chinese e-commerce sector, Nomura said in a note. It forecasts JD's retail business to report a 5.5% revenue decline, better than market expectations for a 7.5% decline. That was partly supported by supermarket sales, Nomura added.

 
 

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