How Did JD.com's Q2 Compare To Expectations?

Shares of JD.Com Inc(ADR) JD fell more than 5 percent Monday after the China-based e-commerce firm reported a loss in its second quarter earnings report.

JD.com, China's second-biggest e-commerce firm, reported revenue of Rmb93.2 billion ($13.98 billion) in the quarter, which marks a 44 percent year-over-year increase, UBS analyst Ming Xu commented in a brief report. The Hong Kong-based analyst added that this represents a 4-6 percent beat compared to what analysts were expecting, but non-GAAP operating margin of 0.6 percent fell short of the 0.9 percent Xu was expecting due to a lower marketplace contribution and anniversary promotions.

Gross merchandise value (GMV) in the quarter rose 46 percent year-over-year to Rmb234.8 billion and exceeded Xu's estimate of Rmb224.5 billion. The quarter also marked an acceleration in growth from 42 percent year-over-year in the first quarter.

Looking forward, JD's third quarter revenue guidance of Rmb81.8 to 84.2 billion marks a year-over-year growth of 36 to 40 percent, which does signal a slowdown from the second quarter but is largely in-line with the analyst's estimate of Rmb83.2 billion and the consensus estimate of Rmb82.5 billion.

Bottom line, a top-line beat and signs of year-over-year re-acceleration are a "slight positive" but the weaker margins are a key focus and concern for investors.

Xu maintains a Neutral rating on JD's stock with an unchanged $41 price target.

Related Links:

Who Needs All This Political Worry? This Pro Says Invest Outside The US

China's Forgotten E-Commerce Giant Is Looking To Make Its Mark

Market News and Data brought to you by Benzinga APIs
Comments
Loading...
Date
ticker
name
Actual EPS
EPS Surprise
Actual Rev
Rev Surprise
Posted In: Analyst ColorEarningsNewsAnalyst RatingsChinaChina eCommerceecommerceMing Xu
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!