JD.com Likely to See Profit, Revenue Rise in 3Q

Dow Jones
11/13
 
 

JD.com is scheduled to report results for third quarter next Tuesday. Here's what you need to know:

 

NET PROFIT FORECAST: The Chinese e-commerce giant's net profit is expected to reach 7.265 billion yuan, equivalent to $1.09 billion, higher than 5.28 billion yuan a year earlier, according to the consensus estimate by FactSet.

 

REVENUE FORECAST: The Beijing-based company's third-quarter revenue is estimated to reach 308.12 billion yuan, higher than 299.06 billion the same period last year, according to FactSet.

JD.com's Hong Kong-listed shares rose 5.1% in the third quarter as the company navigates a volatile market environment.

 

WHAT TO WATCH:

--PROFITABILITY: Analysts expect JD.com's losses in new businesses, which includes food delivery and overseas business, to narrow quarter-on-quarter. Food delivery loss likely declined by more than half on year during the third quarter, Jefferies analysts say in a research note. Intensifying competition in the China e-commerce and food delivery space may still be a downside risk, Citi analysts say.

--REVENUE: Citi analysts expect revenue to grow 3.5% on year during the quarter. Citi expects electronic products sales to fall slightly but expect an revenue increase from general merchandise. The results are likely to be broadly in line with expectations, it says in a research note. The analysts will be closely watching for new updates for Single's Day sales event momentum and demand for the latest smartphone upgrade. Citi keeps a buy rating on the stock, through it thinks the trend of weak macroeconomics is likely to continue.

 
 

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