- JD.com reported a net revenue of 306.08 billion yuan for the 4th quarter, marking a year-on-year increase of 3.6%.
- The net revenue beat estimates, which had predicted a figure of 299.9 billion yuan.
- Adjusted earnings per American depositary receipts (ADR) were 5.30 yuan, versus the 4.81 yuan reported in the same period the previous year.
- The adjusted earnings per ADR also surpassed estimates, which had forecasted 4.57 yuan.
- Fulfillment expense for the quarter was 17.3 billion yuan, a 2.4% increase from the previous year.
- This expense was lower than estimated, with predictions having been set at 17.66 billion yuan.
- JD.com reported an adjusted Ebitda of 9.66 billion yuan, marking a year-on-year increase of 8.6%.
- This figure also surpassed estimates, which had predicted an adjusted Ebitda of 9.46 billion yuan.
- The company maintained an adjusted operating margin of 2.5%, the same as the previous year and in line with estimates.
- The adjusted Ebitda margin was 3.2%, higher than the 3% reported the previous year.
- JD.com is committed to returning value to shareholders through an annual cash dividend and a share repurchase program.
- Shares of JD.com rose 7.7% in pre-market trading to $23.10.
- A total of 167,757 shares were traded during this period.
- The company’s stock has received 36 buy ratings, 12 hold ratings, and no sell ratings.
JD.com Inc (ADR) on Smartkarma
Smartkarma, an independent investment research network, has recently published insightful analyses on JD.com Inc (ADR). According to analysts Brian Freitas, Eric Wen, and Ying Pan, the company is facing some changes at the close on 15 December, with a estimated one-way trade of US$18.7bn. These changes include 6 inclusions and 6 exclusions for the Nasdaq-100 Stock Index, with an additional ad hoc change on top of that. The impact on the inclusions ranges from 1-8 days of average daily volume (ADV) to buy, while the impact on the deletions varies from 0.7-2.6 days of ADV to sell. Apart from these changes, there are expected to be inflows in Tesla Motors and Broadcom, and outflows from Apple, Microsoft, Amazon.com, and NVIDIA. This could potentially impact the stock price and trading volume of JD.com Inc (ADR) in the short term.
On the other hand, analysts Eric Wen and Ying Pan have a bullish outlook on JD.com Inc (ADR). They believe that the company will face high geopolitical uncertainty in the third quarter of 2024 due to the US election, but could experience a relief rally in the first quarter of 2024. To prepare for potential market movements, they have recommended both high-beta and low-risk investments for 2024. For low-risk, they suggest investing in JD/JDL/JDH, Tencent, and Luckin, while for high-beta, they recommend BEKE, LI Auto, and Kuaishou. This indicates that despite potential challenges, JD.com Inc (ADR) is still seen as a strong investment opportunity in the long term. Additionally, Ying Pan notes that JD reported strong revenue and profit, with subsidiary JDL performing well. They also expect growth in gross merchandise volume (GMV) to remain steady, but potentially pick up in 2024. Furthermore, JD has lowered the minimum spend for free shipping, which could lead to accelerated parcel volume growth for JD Logistics. This could potentially drive up the company’s revenue and profitability in the future.
A look at JD.com Inc (ADR) Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 4 | |
| Dividend | 4 | |
| Growth | 3 | |
| Resilience | 5 | |
| Momentum | 3 | |
| OVERALL SMART SCORE | 3.8 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
JD.com Inc (ADR) has a bright long-term outlook according to Smartkarma Smart Scores. With a score of 4 for both Value and Dividend, the company is considered to have strong financials and a potential for future growth. This is further supported by a score of 3 for Growth, indicating a positive outlook for the company’s expansion and profitability. Additionally, JD.com Inc (ADR) has a perfect score of 5 for Resilience, which means it is well-equipped to weather any potential challenges or downturns in the market. Although the company’s Momentum score is at 3, it still suggests a stable and consistent performance.
Based on the description of the company, JD.com Inc is an online direct sales company in China that offers a wide range of products through its website and mobile applications. With a focus on appliances, computers, digital products, communication products, garments, books, and household items, the company caters to both consumers and vendors. With strong financials, potential for growth, and a resilient business model, JD.com Inc (ADR) is well-positioned for long-term success in the Chinese market.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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