JD.com reported second-quarter results early Tuesday that beat estimates on the top and bottom lines, overcoming difficult conditions. JD stock jumped.
The China-based e-commerce giant reported adjusted income of 61 cents a share on revenue of $40 billion. Analysts expected JD to report earnings of 41 cents a share on revenue of $38.5 billion. Revenue climbed 5.4% from the year-ago quarter but that's a sharp slowdown from the double-digit revenue growth it reported for years.
JD stock climbed 3.4%, closing at 57.20 on the stock market today.
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JD competes primarily against Alibaba with the two being the largest e-commerce companies in China. In addition to e-commerce, JD is a leading supply-chain based technology and services provider. The company has also expanded into health care services.
JD Stock: Solid Results Amid Challenges
"JD.com's resilient business model, industry-leading supply chain capabilities and efficient operations helped us deliver solid quarterly results amid ongoing challenges in the external environment," Chief Executive Lei Xu said in written remarks with the earnings release.
Alibaba reported quarterly earnings early this month that beat expectations while indicating business conditions improved in June. Both Alibaba and JD are facing adversity via Covid-19 shutdowns, a challenging regulatory market in their home nation and macroeconomic weakness.
"We were pleased to post top-line growth that outpaced the industry during a challenging period, as well as healthy profitability and cash flow," JD Chief Financial Officer Sandy Xu said in written remarks.
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