Chinese e-commerce giant, JD.com (NASDAQ:JD) gained in pre-market trading after the company announced its third-quarter results with adjusted earnings per American Depository Share (ADS) of $0.92 or RMB6.70 as compared to RMB6.27 for the same period last year. This was above analysts’ expectations of earnings of $0.82 per ADS.
The company’s net revenues increased by 1.7% year-over-year to $34 billion or RMB247.7 billion in the third quarter but fell short of consensus estimates of $34.34 billion.
Ian Su Shan, JD.com’s CFO commented, “JD’s record profitability for the quarter and healthy cash flow reflects our successful business evolvement and supply chain strengths. We also see our core categories of home appliance and electronics continued to expand market share, while general merchandise gradually ramped up momentum in the quarter, as we relentlessly focus on user experience.”
Is JD.com a Good Stock to Buy?
Analysts are cautiously optimistic about JD.com with a Moderate Buy consensus rating based on 13 Buys and six Holds. The average JD price target of $44.34 implies an upside potential of 66% at current levels even as JD stock has tanked by more than 50% year-to-date.
