We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Will Strong Logistics Business Aid JD.com's (JD) Q4 Earnings?
Read MoreHide Full Article
JD.com, Inc. (JD - Free Report) is set to report fourth-quarter 2021 results on Mar 10.
The company’s strong momentum across its logistics business, which comprises internal and external logistics businesses, is likely to have contributed well to the fourth-quarter performance.
We note that the segment has been delivering a solid performance for quite some time on the back of the company’s progress made in advanced technologies and logistics.
We expect the trend to have continued in the to-be-reported quarter as well, owing to the company’s deepened focus on the lower-tier cities and its growing technology initiatives.
Click here to know how the company’s overall fourth-quarter performance is likely to have been.
The company’s constant focus on enhancing its fast delivery services is expected to get reflected in the to-be-reported quarter’s results.
Its expanding quick delivery services in the lower-tier cities are likely to have aided JD Logistics in gaining traction from these cities in the third quarter. The strengthening of the logistics network in these cities is anticipated to have contributed to the quarterly performance.
JD.com’s growing warehouse network is expected to have benefited its logistics segment in the fourth quarter.
The launch of a warehousing and distribution center in Tianjin is likely to have continued upgrading the supply-chain cooperation between JD Logistics and Xiaomi. The benefits of the same are likely to get reflected in the fourth-quarter results.’
The launch of the air cargo route between East China and London — JD’s regular cargo charter flight between China and Europe, which has added strength to its international logistics business — is expected to have continued benefiting its performance in the fourth quarter.
The company’s rising technology initiatives are expected to have boosted the segment’s user momentum and operational efficiency in the to-be-reported quarter.
The integration of Artificial Intelligence technology into the company’s warehouse network is anticipated to have continued accelerating the delivery of direct sales order services in the quarter under review.
The robust momentum across third-party logistics is expected to have driven revenue growth for the underlined segment.
However, mounting expenses related to cargo network expansion are likely to get reflected in the upcoming results.
Image: Shutterstock
Will Strong Logistics Business Aid JD.com's (JD) Q4 Earnings?
JD.com, Inc. (JD - Free Report) is set to report fourth-quarter 2021 results on Mar 10.
The company’s strong momentum across its logistics business, which comprises internal and external logistics businesses, is likely to have contributed well to the fourth-quarter performance.
We note that the segment has been delivering a solid performance for quite some time on the back of the company’s progress made in advanced technologies and logistics.
We expect the trend to have continued in the to-be-reported quarter as well, owing to the company’s deepened focus on the lower-tier cities and its growing technology initiatives.
Click here to know how the company’s overall fourth-quarter performance is likely to have been.
JD.com, Inc. Revenue (TTM)
JD.com, Inc. revenue-ttm | JD.com, Inc. Quote
Factors at Play
The company’s constant focus on enhancing its fast delivery services is expected to get reflected in the to-be-reported quarter’s results.
Its expanding quick delivery services in the lower-tier cities are likely to have aided JD Logistics in gaining traction from these cities in the third quarter. The strengthening of the logistics network in these cities is anticipated to have contributed to the quarterly performance.
JD.com’s growing warehouse network is expected to have benefited its logistics segment in the fourth quarter.
The launch of a warehousing and distribution center in Tianjin is likely to have continued upgrading the supply-chain cooperation between JD Logistics and Xiaomi. The benefits of the same are likely to get reflected in the fourth-quarter results.’
The launch of the air cargo route between East China and London — JD’s regular cargo charter flight between China and Europe, which has added strength to its international logistics business — is expected to have continued benefiting its performance in the fourth quarter.
The company’s rising technology initiatives are expected to have boosted the segment’s user momentum and operational efficiency in the to-be-reported quarter.
The integration of Artificial Intelligence technology into the company’s warehouse network is anticipated to have continued accelerating the delivery of direct sales order services in the quarter under review.
The robust momentum across third-party logistics is expected to have driven revenue growth for the underlined segment.
However, mounting expenses related to cargo network expansion are likely to get reflected in the upcoming results.
Zacks Rank & Stocks to Consider
JD.com currently carries a Zacks Rank #4 (Sell).
Investors interested in the broader technology sector can consider some better-ranked stocks like Advanced Micro Devices (AMD - Free Report) , MaxLinear (MXL - Free Report) and Teradata (TDC - Free Report) , each sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Advanced Micro Devices has gained 31.1% in the past year. The long-term earnings growth rate for the AMD stock is currently projected at 29.1%.
MaxLinear has gained 55.5% in the past year. The long-term earnings growth rate for the MXL stock is currently projected at 20%.
Teradata has gained 4% in the past year. The long-term earnings growth rate for the TDC stock is currently projected at 19.5%.