This e-commerce company beat analysts’ estimates by $0.12 last quarter and is expected to grow by 42.9% next year.
JD.com, Inc. (JD)
From Forecasts & Strategies
JD.com, Inc., the Beijing e-commerce company that is considered by many to be the next “Amazon of China,” is now profitable. Moody’s just upgraded JD’s rating to Baa1.
Alibaba is better known in the West, but in my judgment, JD.com has a better model for its “everything store” in China, as it sells a wider range of products, from home appliances to cellphones. It has fulfillment centers in seven cities and more than 700 warehouses in 89 cities. JD.com also has a more advanced logistics network and is launching next-generation delivery solutions such as drones and autonomous delivery vehicles.
In its most recent quarter, JD.com’s earnings jumped 56%. The number of customers grew by 30%, and revenues soared 34%, faster than e-commerce in general. Profit margins are thin but growing, and should exceed 5% later this year. The stock is selling for 30 times earnings. I expected JD.com to beat Street expectations when it reported this month. It has already beaten Street expectations four quarters in a row.
Mark Skousen, Forecasts & Strategies, markskousen.com, Eagle Financial, 300 New Jersey Ave. NW, Suite 500, Washington, D.C. 20001, October 23, 2020