China e-commerce giant JD.com (JD) early Thursday reported fourth quarter earnings that beat expectations, with a 13.4% revenue jump that marked JD’s fastest growth in nearly three years. U.S.-listed JD stock jumped in premarket trading.
JD said that it earned an adjusted 7.42 yuan per American depositary share on sales of 347 billion yuan for the December-ended quarter. Analysts polled by FactSet projected the Beijing-based company would post adjusted earnings of 6.20 yuan per ADS on sales of 330.66 billion yuan. Adjusted earnings increased 40% year-over-year.
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The 13.4% year-over-year revenue growth marked a major acceleration from 5.1% growth in the previous September-ended quarter and 1.2% in the second quarter of 2024. It is JD’s fastest growth rate since the first quarter of 2022.
JD.com Chief Executive Sandy Xu said the company’s results were helped by “rebounding consumption” for the Chinese economy.
“Most of our product categories as well as key metrics such as our quarterly active users and shopping frequency saw strong double-digit growth year-on-year in Q4, reflecting our growing mindshare among consumers,” Xu said in a news release. “We head into 2025 with more optimism, as consumption sentiment steadily picks up, and we continue to unlock high-quality growth potentials with our strong execution of strategic priorities.”
On the stock market today, U.S.-listed JD stock is up 8% at 47.23 in recent premarket trading.
More earnings coverage to come.
JD Stock Up 28% This Year
Prior to earnings, JD gained 6% in Wednesday trading. News of the latest economic stimulus measures from the Chinese government boosted Hong Kong’s Hang Seng index to a 3.3% gain on Wednesday. On the U.S. market, JD shares broke narrowly above a 43.63 cup-with-handle buy point during yesterday’s action, according to IBD MarketSurge.
While JD stock hasn’t soared quite as fast as China e-commerce rival Alibaba Group (BABA), the company has been boosted by increasing investor confidence in Chinese technology companies. JD stock is up 28% so far this year, not including Thursday’s early action. Shares are up 104% compared to 12 months ago.
Coming into the report, JD stock had an IBD Composite Rating of 93 out of a best-possible 99, according to IBD Stock Checkup. The score combines five separate proprietary ratings into one rating. The best growth stocks have a Composite Rating of 90 or better.
JC stock has a 21-day ATR of 4.95%. Alibaba’s ATR is 5.70%.
In the current, unpredictable market, IBD suggests stocks with ATRs of 3 or below.
Further, JD’s IBD Relative Strength Rating was 96 out of 99. The RS Rating means that JD has outperformed 96% of all stocks in IBD’s database over the past year.
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