JD reports £1.76 billion of net income in the fiscal second quarter

By: Wajeeh Khan
Wajeeh Khan
Wajeeh is an active follower of world affairs, technology, an avid reader, and loves to play table tennis in… read more.
on Aug 17, 2020
  • JD reports £1.76 billion of net income in the fiscal second quarter.
  • The e-commerce firm tops analysts' estimates for earnings and revenue.
  • JD saw a 40% growth in mobile daily active users in June.

JD.com Inc. (NASDAQ: JD) published its quarterly financial results on Monday that came in stronger than what the analysts had anticipated. The company said that its active customer accounts continued to grow in the fiscal second quarter.

Shares of the company were reported 4.5% up in premarket trading on Monday. The Nasdaq-listed shares of JD.com are currently trading at £47.37 per share that marks an about 65% increase on a year to date basis.

JD’s Q2 financial results versus analysts’ estimates

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JD reported £1.76 billion of net income in the second quarter that translates to £1.15 per American depositary share (ADS). In the comparable quarter of last year, its net income was capped at £66.08 million or £0.04 per ADS. Learn more about a profit and loss statement.  

Excluding one-time items, the Chinese e-commerce company noted 39 pence of adjusted earnings per ADS versus 25 pence per ADS in the comparable quarter of 2019. In terms of revenue, it posted £21.77 billion in the recent quarter that marks a 33.8% growth on a year over year basis.

According to FactSet, experts had forecast the company to print a lower £21.01 billion in revenue in the second quarter. Their estimate for earnings per ADS was 30 pence. In June, JD and Alibaba made an unprecedented £110 billion of combined sales on China’s annual shopping festival “618”.

As per the Beijing-based company, its revenue from net produce jumped 33.5% in Q2. Its revenue from net service surged 36.4% while the cost of revenue came in 34.5% higher in the fiscal second quarter. JD.com raised £3.04 billion in June via its secondary listing in Hong Kong.

Other prominent figures in JD’s earnings report

Other prominent figures in JD’s earnings report on Monday include 417.2 million active customer accounts in the twelve months that concluded on June 30th  that marks a 29.9% growth on an annualised basis. As of the end of the first quarter, it had 387.4 million active customer accounts. In June, JD saw a 40% growth in mobile daily active users (DAUs). CFO Sandy Xu commented on the report on Monday and said:

“Our scale advantages and cost efficiency enabled us to provide attractive prices during our June 18 sales promotions, benefiting consumers and society as China’s economy emerges from the difficult pandemic period, and helped drive solid top and bottom-line results for the second quarter.”

JD.com performed fairly upbeat in the stock market last year with an annual gain of roughly 70%. At the time of writing, it is valued at £74.34 billion and has a price to earnings ratio of 108.15.

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