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The Beijing-based company reported adjusted earnings of 70 cents per US share on revenue of $42.8 billion. Analysts polled by FactSet had expected JD to report adjusted earnings of 51 cents per share on revenue of $42.53 billion. On a year-over-year basis, JD’s earnings rose 100%, while sales rose 7%.
Before China ended its zero-Covid policy late last year, a wave of coronavirus cases had already disrupted consumption and order fulfillment in the world’s second-largest economy.
“Although 2022 presented many challenges for JD and China as a whole, we delivered solid operational results and exceeded 1 trillion RMB ($143.6 billion) in annual revenue for the first time,” CEO Lei Xu said in a press release.
“As we look forward, amid ever-new opportunities and challenges, we will remain focused on lowering costs, increasing efficiency and constantly improving the user experience,” he added.
JD is one of the largest e-commerce companies in China, competing with Ali Baba (BABA) and PDD Holdings (PDD). The company also provides supply chain technology and services.
JD share falls after earnings report
JD stock fell 6.6%, near 43.90, during morning trading on the stock market today.
On February 21, shares of JD, Alibaba and PDD (formerly Pinduoduo) all fell on a report that JD planned to spend $1.5 billion to create a subsidiary that would target budget-conscious consumers. This raised concerns about increasing competition and price wars.
Alibaba reported quarterly results late last month that beat estimates as the Chinese e-commerce giant also struggled through softer demand and supply chain issues.
JD stock ranks 10th out of 58 stocks in IBD’s retail-internet industry group, according to IBD Stock Checkup. It has an average IBD Composite Rating of 61 out of 99.
Please follow Brian Deagon on Twitter at @IBD_BDeagon for more on technology stocks, analysis and financial markets.
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