JD.com beats the street on revenue in Q2
JD.com, second only to Alibaba in size, is a dominant force in the Chinese ecommerce space, and it recently released earnings results for its second quarter. The company beat its own guidance and smashed analysts’ expectations on revenue, which came in at 93.2 billion yuan for the quarter. That’s a 46.3% rise from the year ago quarter, a beat of the company’s own guidance of revenues in a range of 88 billion to 90.5 billion yuan, and a considerable overshoot of analysts’ expectations of 89.3 billion yuan.
JD.com’s share price has appreciated by 74% year to date
SOURCE: Yahoo Finance
Chief financial officer Sidney Huang described the quarter as one of “strong top-line growth, solid profitability, and a remarkable free cash flow.” He also announced the deconsolidation of JD Finance “as a result of the legal ownership transfer of the business on June 30, 2017.” In other words: a spin off.
The company’s warehouse space also grew by 22% over the three months to June 30, to 7.1 million square meters – an important metric that has direct impact on the company’s ability to grow its retail delivery business.
JD offered third quarter revenue guidance between 81.8 billion and 84.2 billion yuan, which represents a growth rate of 36% to 40% in the comparable period of 2016.
Dominion holds JD.com in its Global Trends Ecommerce Fund.
If you would you like to receive the Newsfeeds daily, please click here to sign up now!Help us make this Newsfeed better by rating this article. 1 star = Poor and 5 stars = Excellent
- Click here to print this story: Print
The views expressed in this article are those of the author at the date of publication and not necessarily those of Dominion Fund Management Limited. The content of this article is not intended as investment advice and will not be updated after publication. Images, video, quotations from literature and any such material which may be subject to copyright is reproduced in whole or in part in this article on the basis of Fair use as applied to news reporting and journalistic comment on events.