JD.com Inc. (NASDAQ: JD) is slated to report fourth quarter 2019 earnings results on Monday, March 2, before the opening bell. The consensus estimates are for earnings of $0.06 per share on revenue of $23.7 billion.
The quarterly results are expected to benefit from strength in the retail business and the company’s expansion into lower-tier cities through its social e-commerce platform Jingxi. Last quarter, 75% of Jingxi’s new users were from lower-tier cities.
The company has seen strong growth in revenue, aided by growth in users, over the past quarters and this momentum is expected to continue in the fourth quarter as well. JD.com has been taking efforts to improve its customer experience and this is likely to have brought more users to its platform.
Also read: JD.com Q3 2019 Earnings Conference Call Transcript
The company’s efficient logistics and delivery services are also likely to have fueled the results during the quarter. However, higher costs related to investments are likely to pressure the bottom line. Lower margins are another cause of concern.
Last month, reports emerged about JD.com planning to spin off its logistics arm through an IPO in the second half of the year that would value the company at around $30 billion. It is expected that as a stand-alone entity, JD Logistics would perform better. Separating the capital-intensive business unit might improve the company’s overall cash position and enhance shareholder value. Updates on this area will be worth watching.
In the third quarter of 2019, JD.com beat revenue and earnings estimates. Net revenues increased 28.7% to RMB134.8 billion, or $18.9 billion. Adjusted net income per ADS was RMB2.08 ($0.29).
For the fourth quarter of 2019, net revenues are expected to grow 21-25% to a range between RMB163 billion and RMB168 billion compared to the prior-year period.
Shares of JD.com have gained 17% in the past three months. The stock has a strong Buy rating and an average price target of $47.08.
Most Popular
Key metrics from Shopify’s (SHOP) Q1 2024 earnings results
Shopify Inc. (NYSE: SHOP) reported first quarter 2024 earnings results today. Revenue increased 23% to $1.9 billion compared to the prior-year period. Gross Merchandise Volume (GMV) increased 23% year-over-year to
EA Earnings: Electronic Arts reports lower revenues for Q4 2024
Video game publisher Electronic Arts (NASDAQ: EA) Tuesday reported a decline in revenues for the fourth quarter of 2024. Meanwhile, the top line came in slightly above analysts' estimates. Fourth-quarter
What to look for when Home Depot (HD) reports Q1 2024 earnings
Shares of The Home Depot (NYSE: HD) stayed red on Tuesday. The stock has gained 17% over the past 12 months. The home improvement retailer is scheduled to report its
