Overview
- JD.com reported revenue of 315.7 billion yuan, up 4.9% year over year, and a 5.1 billion yuan profit that fell 53% from a year earlier but ended last quarter’s loss.
- On an adjusted basis, net income reached 7.4 billion yuan, topping the roughly 5.3 billion yuan analyst forecast as adjusted earnings per share came in at RMB5.12 versus RMB3.64 expected.
- The core retail business improved profitability, with operating income up 17% to 15 billion yuan and the operating margin rising to 5.6%.
- Shares listed in the United States rose roughly 1% to 2% in pre-market trading after the results, reflecting relief over the earnings surprise.
- The company continues to face a price war in e-commerce and food delivery and softer spending after national consumer subsidies were scaled back, pressures it has addressed in part with a new merchants program announced in March.