JD.com 2017Q3 EPS beat expectation
The mega-trend for China growth reflected in the online retail sales GMV is further reinforced by the earnings just reported by JD.com ($JD) before US Market open on Monday Nov 13.
JD reported a mega beat result for us:
|EPS, non-GAAP||RMB 1.52/s||361%|
|Gross Profit||RMB 13 B||50%|
|Online Sales Direct||RMB 76.5 B||38.50%|
|Service & Others||RMB 7.28 B||46.20%|
Guidance for 2017Q4 net revenue to grow 35-39% YOY at 107B-110B yuan ($16.1B-$16.6B) vs expectation of 108.3B.
For Q4, it's guiding to net revenues of 107B-110B yuan ($16.1B-$16.6B) -- a growth rate of 35-39% Y/Y, excluding the impact of JD Finance, and vs. expectations for 108.3B yuan.
Data Source: JD.com Press Release
JD closed a nice gap up today. Price has also broken out from the down trend or reverse head and shoulder pattern. It looks like this is what's needed to start turning JD.com back to it's long term uptrend.
Trading is a very personal matter and each trader has got difference techniques or tolerance for risk. I am not recommending my readers to trade this stock or not. I am just sharing my view that investing in asset riding on mega-trend such as the China economy grow trend provide a more assuring trade. In this case, JD.com is the second largest eCommerce retailer after Alibaba ($BABA). If you believe in the story of China eCommerce Retail growth, investing in Alibaba and JD.com means you have got more than 90% of the online retail commerce covered.
Disclaimer: I am long JD.