China’s JD beats quarterly revenue estimates

JD.com, beat Wall Street estimates for quarterly revenue on Tuesday (Aug 23) as lockdowns in China to control the spread of the coronavirus boosted online shopping and the company’s “618” shopping event.

US-listed shares of the Beijing-based company rose nearly 7 per cent in premarket trading.

The company reported second-quarter revenue of 267.6 billion yuan (US$39.07 billion), topping analysts’ average estimate of 262.31 billion yuan, according to IBES data from Refinitiv.

Sales in its product segment, which includes online retail sales, rose 2.9 per cent in the quarter, while those from services such as logistics and marketing jumped 21.9 per cent.

JD.com said net income attributable to ordinary shareholders rose to 4.38 billion yuan, or 1.37 yuan per American Depository Share (ADS) for the three months ended June 30, from 794 million yuan, or 0.25 yuan per ADS, a year earlier.

Peer Alibaba, beat expectations earlier this month even as it reported flat quarterly revenue growth for the first time in its history.