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JD.com's (JD) Earnings and Revenues Beat Estimates in Q4
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JD.com, Inc. (JD - Free Report) reported fourth-quarter 2020 earnings of 23 cents per ADS, which surpassed the Zacks Consensus Estimate by a penny.
The company continued to invest in order to expand its fulfillment capability and broaden product offerings for enhancing services provided to sellers on its marketplace platform to ensure long-term growth. As of Dec 31, 2020, the company operated 900 warehouses, covering an aggregate gross floor area of approximately 21 million square meters.
Revenues
JD.com reported revenues of RMB224.3 billion (US$34.4 billion), surpassing the Zacks Consensus Estimate of US$33.1 billion and increasing 31.4% year over year.
The increase was driven by strong revenues from both product as well as services.
In the fourth quarter, net products revenues increased 53.2% from the prior-year quarter to RMB192.2 billion (US$29.5 billion), accounting for 86% of total fourth-quarter sales.
Markedly, net service revenues increased 53.2% from the prior-year quarter to RMB32.1 billion (US$4.9 billion), accounting for 14% of the total fourth-quarter sales.
Annual Active Customer Accounts — Annual active customer accounts were 471.9 million in the 12-month period ended Dec 31, 2020, reflecting 30.3% year-over-year growth.
Operating Results
Fulfillment expenses totaled RMB14.8 billion (US$2.3 billion), up 34.2% year over year. Marketing expenses totaled RMB10.4 billion (US$1.6 billion), up 26.7%. General and administrative expenses were RMB2 billion (US$0.3 billion), up 34.4% from the year-ago quarter.
Non-GAAP operating margin from continuing operations was 1.5% compared with 1.4% in the year-ago quarter.
Non-GAAP EBITDA from continuing operations in the fourth quarter was RMB2.7 billion compared with RMB2 billion in the year-ago quarter.
Balance Sheet
JD.com exited the fourth quarter with cash, cash equivalents, restricted cash and short-term investments of approximately RMB151.1 billion (US$23.2 billion) compared with RMB64.5 billion in the fourth quarter of 2019.
Long-term earnings growth rates for KLA, TE Connectivity and Mettler-Toledo are projected at 11.6%, 10.4%, and 13.8%, respectively.
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JD.com's (JD) Earnings and Revenues Beat Estimates in Q4
JD.com, Inc. (JD - Free Report) reported fourth-quarter 2020 earnings of 23 cents per ADS, which surpassed the Zacks Consensus Estimate by a penny.
The company continued to invest in order to expand its fulfillment capability and broaden product offerings for enhancing services provided to sellers on its marketplace platform to ensure long-term growth. As of Dec 31, 2020, the company operated 900 warehouses, covering an aggregate gross floor area of approximately 21 million square meters.
Revenues
JD.com reported revenues of RMB224.3 billion (US$34.4 billion), surpassing the Zacks Consensus Estimate of US$33.1 billion and increasing 31.4% year over year.
The increase was driven by strong revenues from both product as well as services.
In the fourth quarter, net products revenues increased 53.2% from the prior-year quarter to RMB192.2 billion (US$29.5 billion), accounting for 86% of total fourth-quarter sales.
Markedly, net service revenues increased 53.2% from the prior-year quarter to RMB32.1 billion (US$4.9 billion), accounting for 14% of the total fourth-quarter sales.
JD.com, Inc. Price, Consensus and EPS Surprise
JD.com, Inc. price-consensus-eps-surprise-chart | JD.com, Inc. Quote
Key Metric
Annual Active Customer Accounts — Annual active customer accounts were 471.9 million in the 12-month period ended Dec 31, 2020, reflecting 30.3% year-over-year growth.
Operating Results
Fulfillment expenses totaled RMB14.8 billion (US$2.3 billion), up 34.2% year over year. Marketing expenses totaled RMB10.4 billion (US$1.6 billion), up 26.7%. General and administrative expenses were RMB2 billion (US$0.3 billion), up 34.4% from the year-ago quarter.
Non-GAAP operating margin from continuing operations was 1.5% compared with 1.4% in the year-ago quarter.
Non-GAAP EBITDA from continuing operations in the fourth quarter was RMB2.7 billion compared with RMB2 billion in the year-ago quarter.
Balance Sheet
JD.com exited the fourth quarter with cash, cash equivalents, restricted cash and short-term investments of approximately RMB151.1 billion (US$23.2 billion) compared with RMB64.5 billion in the fourth quarter of 2019.
Zacks Rank and Stocks to Consider
Currently, JD.com has a Zacks Rank #3 (Hold). Some better-ranked stocks in the broader computer and technology sector are KLA Corporation (KLAC - Free Report) , TE Connectivity Ltd. (TEL - Free Report) and Mettler-Toledo International, Inc. (MTD - Free Report) , each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Long-term earnings growth rates for KLA, TE Connectivity and Mettler-Toledo are projected at 11.6%, 10.4%, and 13.8%, respectively.
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 77 billion devices by 2025, creating a $1.3 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 4 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2022.
Click here for the 4 trades >>