(Reuters) -JD.com Inc beat Wall Street estimates for quarterly revenue on Tuesday as lockdowns in China to control the spread of the coronavirus boosted online shopping and the company’s “618” shopping event.
U.S.-listed shares of the Beijing-based e-commerce giant rose nearly 7% in pre-market trading.
The company reported second-quarter revenue of 267.6 billion yuan ($39.07 billion), topping analysts’ average estimate of 262.31 billion yuan, according to IBES data from Refinitiv.
Sales in its product segment, which includes online retail sales, rose 2.9% in the quarter, while those from services such as logistics and marketing jumped 21.9%.
“We like JD the most amid the zero-COVID-19 policy,” said a research note by Morningstar published earlier this month. “Its self-owned logistics gives it more control over delivery relative to competitors.”
JD.com said net income attributable to ordinary shareholders rose to 4.38 billion yuan, or 1.37 yuan per American Depository Share (ADS) for the three months ended June 30, from 794 million yuan, or 0.25 yuan per ADS, a year earlier.
Excluding items, the company posted a profit of 4.06 yuan per American ADS, compared with analysts’ expectations of 2.71 yuan.
JD Logistics, which operates more than 1,400 warehouses and employs over 200,000 in-house delivery personnel, is also expanding its footsteps overseas. Its first automated warehouse in the United States, “Los Angeles No. 2”, was launched in June.
Peer Alibaba beat expectations earlier this month, even as it reported flat quarterly revenue growth for the first time in its history.
($1 = 6.8495 Chinese yuan renminbi)
(Reporting by Nivedita Balu in Bengaluru; Editing by Sriraj Kalluvila and Mark Potter)
