JD.com Inc. (NASDAQ: JD) released its Q3 2021 earnings on Monday, 15, 2021, before the market open.
What to look for
JD.com is a leading supply chain-based tech and service firm that services a growing base of merchants and customers. JD has become the latest real-economy-based business supporting the country's long-term development. The company had an impressive Q2 2021, and it expects the momentum to continue when it releases Q3 2021 earnings.
Earnings: Stockearning’s Estimated EPS for Q3 2021 was expected to be $0.36. Historical EPS Performance for the past 12 quarters indicated that the company had topped estimates eight times (66%) and missed four times (33%). In the last quarter, the company reported EPS of $0.25 per share, missing $0.32 per share estimates.
Revenue: The expected to report revenue of $33.89 billion in Q3 2021, representing a 32.08% increase from the same period a year ago. The company reported net revenues of $39.3 billion in the second quarter, representing a 26.2% YoY increase. In addition, net product revenues in Q2 2021 were up 23.3%, with net service revenues growing 49.2% compared to the same period a year before.
Stock movement: Since the earnings release, JD shares are up 35.1%. The stock has been UP 17 times out of the last 28 quarters after the earnings release. So, the historical price reaction suggested a 60% probability of the share price going UP once JD released Q3 2021 earnings. According to the Stockearning algorithm, the predicted first-day move is 4%, while the expected move on the seventh day is 8%.
What analysts are saying
Barclays analyst Jiong Shao commenced coverage on JD.com stock with a “Buy” rating and a price target of $98. Shao initiated coverage of the Chinese Tech sector with an optimistic perspective telling investors that they cannot ignore or decide not to invest in China, considering it is the second-largest economy globally. The analyst told investors in a note that Beijing is looking to make its home-grow tech and internet companies stronger and not weaken them. Shao said JD.com has created a dominant e-commerce franchise with a “nearly insurmountable moat and competitive core differentiation.”
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