JD.com stock jumps after adjusted profit nearly doubles, beats expectations by wide margin

The American depositary shares of JD.com Inc.
jumped 2.8% toward a 2-month high in premarket trading Friday, after the China-based ecommerce company reported third-quarter profit that nearly doubled to beat expectations by a wide margin. The company swung to net income of RMB5.96 billion ($839 million), or RMB3.57 per ADS, from a net loss of RMB2.81 billion, or RMB1.81 per ADS, in the year-ago period. Excluding nonrecurring items, adjusted earnings per ADS rose to RMB6.27 from RMB3.16, well above the FactSet consensus of RMB4.86. Revenue grew 11.4% to RMB243.55 billion ($34.24 billion), beating the FactSet consensus of RMB242.96 billion, as net product revenue increased 5.9% to RMB197.03 billion and net service revenue climbed 42.2% to RMB46.51 billion. Adjusted operating margin improved to 4.1% from 2.1%, annual active customers increased 6.5% to 588.3 million and inventories fell 5.1% to RMB71.76 billion as of Sept. 30. The stock has gained 4.2% over the past three months through Thursday, while the iShares China Large-Cap ETF

has dropped 8.3% and the S&P 500
has shed 7.9%.