JD.com (JD), one of China’s leading e-commerce giants, impressed the market with its solid third-quarter performance. The company reported a 5.1% year-on-year increase in net revenues, bringing in RMB 260.4 billion (around $37.1 billion) for Q3 2024. This performance showcases the resilience of JD’s expansive supply chain infrastructure and its ability to drive growth in key sectors like Electronics, Home Appliances, and General Merchandise.
JD.com’s Robust Revenue Growth Surpasses Expectations
JD.com’s revenues for the third quarter exceeded analysts’ expectations, with a forecasted revenue of $35.96 billion. The company’s actual results marked a slight but solid increase, powered by strong performances across product and service sectors. Net product revenues grew by 4.8%, while service revenues saw a slightly higher increase of 6.5%. “We saw an uptick in our topline growth, as well as healthy profitability in the third quarter, as overall consumer sentiment continued to brighten,” said Sandy Xu, JD.com’s CEO.
The growth in electronics and home appliances was particularly notable, reflecting a rebound in consumer confidence in the wake of broader economic challenges. JD also made strides in the fashion sector, with luxury brands like Balenciaga and Saint Laurent launching flagship stores on the platform.
JD’s Earnings Per Share (EPS) Shows Significant Improvement
JD.com reported a substantial increase in both its diluted net income per ADS (American Depositary Share) and non-GAAP diluted net income per ADS. The company posted a diluted EPS of RMB 7.73 ($1.10), a 54.6% jump from the previous year’s Q3. Non-GAAP EPS also saw a strong uptick, climbing 29.5% to RMB 8.68 ($1.24). This growth exceeded the analyst consensus estimate of $1.05, showcasing JD’s ability to drive profitability while scaling its operations.
JD’s Operating Margins Improve as Efficiency Grows
JD.com’s operating income for the third quarter of 2024 surged by 29.5%, reaching RMB 12.0 billion ($1.7 billion), and operating margins expanded to 4.6%, up from 3.8% in Q3 2023. This improvement was fueled by the company’s continued investment in its supply chain infrastructure and logistics capabilities, which provided better economies of scale.
JD Repurchases Shares
In a move that will surely please investors, JD.com repurchased a total of 31 million Class A ordinary shares for approximately $390 million in Q3 2024. This was part of the company’s ongoing $5.0 billion share repurchase program, which was launched earlier this year.
Is JD Stock a Good Buy Right Now?
Analysts remain optimistic about JD stock, with a Strong Buy consensus rating based on 13 Buys and two Holds. Over the past year, JD has increased by more than 35%, and the average JD price target of $47.77 implies an upside potential of 34% from current levels.
