JD.com Beats Quarterly Estimates on Lower Prices and Cost Cutting Moves

By
Bill McColl
Bill McColl
Full Bio

Bill McColl has 25+ years of experience as a senior producer and writer for TV, radio, and digital media leading teams of anchors, reporters, and editors in creating news broadcasts, covering some of the most notable news stories of the time.

Learn about our editorial policies
Published November 15, 2023
JD.com

Bloomberg / Contributor / Getty Images

Key Takeaways

  • Lower prices and reduced spending help JD.com post better-than-expected third quarter results.
  • The Chinese e-commerce company also benefited from its supply chain advantages.
  • Despite Wednesday's gains, ADRs of JD.com have still lost more than half their value this year.

American depositary receipts (ADRs) of JD.com advanced over 7% in early trading Wednesday after the Chinese e-commerce firm posted better-than-expected results as it attracted customers with lower prices while it cut costs.

JD.com reported it achieved record profitability in the third quarter of fiscal 2023, with earnings per share (EPS) of 6.70 Chinese yuan ($0.92). Revenue rose 1.7% from a year ago to 247.7 billion Chinese yuan ($34.2 billion). Both were better than estimates.

CEO Sandy Xu credited the strong results to the company’s “proactive efforts on enhancing price competitiveness and platform ecosystem, as well as our supply chain advantages.”

CFO Ian Su Shan explained that JD.com has continued to expand its market share in its core categories of home appliance and electronics. He added that general merchandise sales “gradually ramped up momentum in the quarter.”

The company slashed research and development expenses by 7.8%, and general and administrative costs by 5.6%.?

ADRs of JD.com have slumped this year, and even with Wednesday’s gains, they were down more than 50% for 2023.

JD

TradingView
Do you have a news tip for Investopedia reporters? Please email us at
Article Sources
Investopedia requires writers to use primary sources to support their work. These include white papers, government data, original reporting, and interviews with industry experts. We also reference original research from other reputable publishers where appropriate. You can learn more about the standards we follow in producing accurate, unbiased content in our editorial policy.

  1. JD.com. "JD.com Announces Third Quarter 2023 Results."

Take the Next Step to Invest
×
The offers that appear in this table are from partnerships from which Investopedia receives compensation. This compensation may impact how and where listings appear. Investopedia does not include all offers available in the marketplace.
Service
Name
Description