Chinese e-commerce giant JD.com (DinarThursday beat expectations for the fourth quarter despite some weakness in consumer spending due to Covid-19 restrictions that were lifted in December. But the Jordanian dinar shares fell in morning trading.
The Beijing-based company reported adjusted earnings of 70 cents per US share on revenue of $42.8 billion. Analysts polled by FactSet expected JD to report adjusted earnings of 51 cents per share on revenue of $42.53 billion. On an annual basis, JD profits jumped 100% while sales increased 7%.
Before China ended its coronavirus policy late last year, an increase in coronavirus cases had already disrupted consumption and order fulfillment in the world’s second-largest economy.
“While 2022 posed many challenges for JD and China as a whole, we achieved strong operating results and surpassed CNY1 trillion ($143.6 billion) in annual revenue for the first time,” CEO Li Xu said in a statement. New release.
He added, “Looking to the future, in the midst of ever-evolving opportunities and challenges, we will continue to focus on reducing costs, increasing efficiency and constantly improving the user experience.”
JD shares fell after the earnings report
The Jordanian Dinar share decreased by 6.6%, near 43.90, during the morning trading on the stock exchange today.
On Feb. 21, shares of JD, Alibaba, and PDD (formerly Pinduoduo) tumbled on a report that JD planned to spend $1.5 billion to create a subsidiary targeting budget-conscious consumers. This raised fears of increased competition and price wars.
Alibaba reported quarterly results late last month that beat estimates, as the Chinese e-commerce giant also battled weak demand and supply chain woes.
JD stock ranks 10th out of 58 stocks in IBD’s Internet and Retail Industry Group, according to IBD stock check. It has an average IBD composite rating of 61 out of 99.
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