JD.com (NASDAQ:JD) announced early on Tuesday that its earnings for the second quarter surpassed analysts’ expectations on both the top and bottom lines, despite challenging market conditions. The JD stock was volatile.
The e-commerce behemoth with its headquarters in China posted an adjusted income of 61 cents per share on revenue of $40 billion. The consensus estimate among financial experts was that JD.com (NASDAQ:JD) would report earnings of 41 cents per share on a revenue of $38.5 billion. The revenue increased by 5.4% compared to the same period last year, but this represents a significant slowdown compared to the double-digit revenue growth the company claimed for many years.
JD’s stock price increased by more than 1.7%, then dropped and increased again. During the early session on the stock market today, it traded near 55.60, reflecting a gain of 0.7%.
JD’s primary rival is Alibaba (BABA), the two largest e-commerce companies in China. JD.com (NASDAQ:JD) competes with Alibaba in this regard. JD is not only a leader in online commerce but also in providing technology and services based on supply chains. Additionally, the corporation has branched out into the health care services industry.
JD Stock: Consistent Performance Despite Obstacles
Chief Executive Officer Lei Xu stated in written remarks that accompanied the earnings release that “JD.com’s resilient business model, industry-leading supply chain capabilities, and efficient operations helped us deliver solid quarterly results despite ongoing challenges in the external environment.”
At the beginning of this month, Alibaba announced quarterly earnings above forecasts, indicating that business conditions improved in June. Alibaba and JD.com (NASDAQ:JD) are going through difficult times due to the Covid-19 shutdowns, a problematic regulatory market in their countries, and general socioeconomic instability.
In written remarks, JD.Com (NASDAQ:JD) Chief Financial Officer Sandy Xu stated, “We were happy to deliver top-line growth that exceeded the market during a challenging environment, as well as good profitability and cash flow.”
Featured Image: Megapixl @Xixinxing