Shares of Jingtocom rose on Thursday after the Chinese e-commerce company reported first-quarter results that significantly beat Wall Street expectations.
As the world’s second-largest economic growth slows, management continues to improve its performance in a difficult business environment.
JD.com reported first-quarter revenue of 260 billion yuan ($36 billion) and earnings per share of 5.65 Chinese yuan (78 cents). Analysts surveyed by FactSet had expected the company to report earnings of 4.67 yuan per share and revenue of 258.1 billion yuan.
Jingtocom’s stock rose 3.5% in pre-market trading in the US.
“2024 is the year of execution, and we are already seeing tangible results across our business,” JD.com CEO Sandy Xu said in a statement. “Particularly in the first quarter, our focus on user experience drove significant growth in active users and user engagement.”
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Like its peer Alibaba
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JD.com has been struggling for more than a year as China’s economic slowdown hits consumption and drives shoppers to cheaper alternatives such as PDD-owned Pinduoduo.
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Jingdong City still faces headwinds, with shares down more than 10% in the past year, despite a one-third rise in the stock price in a month on optimism about China’s economy. However, management has proven capable of steering the ship through storms. .
The latest financial report is further proof of that. It is helping stocks, if not fueling the debate over whether the relatively low prices of Chinese stocks represent value or a value trap.
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Email Jack Denton at jack.denton@barrons.com.
