May 10, 2023

E-commerce giant JD.Com will release its latest earnings figures to the market on Thursday, with the price of the shares trading near the 2022 lows.

JD – Weekly Chart

JD – Weekly Chart

The price of JD has slumped to $35.19, with the 2022 lows at 33.17 for the US ADR. 

JD.com will report its first-quarter earnings after the Hong Kong market closes on 11 May. Despite China’s economic reopening and relaxation of the tech crackdown, the company’s shares have fallen around 40% this year.

China’s stuttering rebound and US-China tensions have slowed demand for US-listed shares. The company reported strong fourth-quarter earnings, which may add to the potential for an upside surprise.

The e-commerce retailer reported fourth-quarter revenue at 295.4 billion yuan (US$42.8 billion), for 7.1% growth annually. Full-year revenue for 2022 was 1 trillion yuan (US$151.7 billion). However, the annual revenue growth slowed to 9.9% in 2022 after a 27.6% increase in 2021. Many retailers have seen their shares struggle after the pandemic demand for e-commerce warped their profits.

JD.com’s first-quarter revenue is expected to be 240.7 billion yuan or 0.4% growth year over year. Net income is expected to come in at 5.3 billion yuan, and earnings per share of 0.86 yuan, compared to a net loss of 1.92 yuan from the same period a year ago.

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