JD.com reported 3Q earnings of RMB3.42 ($0.50) per share, which jumped 64.4% from the year-ago period and topped analysts’ estimates of RMB2.71. The China-based e-commerce giant’s revenues of RMB174.2 billion ($25.7 billion) grew 29.2% year-over-year and beat the Street’s estimates of RMB169.72 billion.
JD.com (JD) said that its 3Q sales were driven by general merchandise sales growth of 34.8% and net service revenue growth of 42.7% year-over-year. Meanwhile, earnings gained from improved sales and margin expansion. JD.com’s annual active customer accounts also rose 32.1% year-over-year to 441.6 million at the end of Sept. 30.
JD.com’s CEO Richard Liu said “Today, as China emerges from the pandemic, we are glad to see that our business partners are recovering rapidly with the support of our online and offline supply chain infrastructure. And our consumer mindshare continues to expand with over 100 million new active users joining our platform compared to a year ago.” (See JD stock analysis on TipRanks).
On Oct. 22, Mizuho Securities analyst James Lee raised the stock’s price target to $90 (2.3% downside potential) from $80 and maintained a Buy rating, amid increased confidence in the company’s long-term prospects. The analyst also anticipates strong demand in 4Q due to 5G handset launches and continued recovery in the beauty and apparel categories.
Currently, the Street has a bullish outlook on the stock. The Strong Buy analyst consensus is based on 13 Buys and 2 Holds. With shares exploding 161.4% year-to-date, the average price target stands at $86.15, implying downside potential of about 6.4% to current levels.
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