BEIJING - Investors and analysts are gearing up for the release of JD (NASDAQ:JD).com's third-quarter fiscal 2023 earnings report, scheduled for November 15. As one of China's leading e-commerce giants, JD.com is navigating through a period marked by the country's economic slowdown and a challenging competitive environment.
The company is expected to announce adjusted earnings of $0.81 per American depositary share (ADS), which would represent a decrease from the $0.81 per ADS reported in the same period last year. Net revenue is anticipated to reach $33.9 billion, showing a 4.5% year-over-year decline. These projections reflect the impact of various headwinds, including aggressive pricing strategies, uncertainty in the internet sector, and a sluggish real estate market.
Despite these hurdles, analysts like James Lee from Mizuho Securities remain positive about JD.com's long-term prospects. The optimism is fueled by factors such as robust international travel demand and the success of the Double 11 sales event, an annual shopping extravaganza in China that generates significant revenue for retailers like JD.com. Lee maintains a Buy rating on JD.com's stock but has adjusted the price target to $40 from the previous $60.
Further analysis indicates a consensus average price forecast of $44.34 for JD.com on TipRanks, suggesting a potential upside of 72.2% from current levels.
Looking ahead to the full fiscal year, expectations are set for an earnings per share (EPS) of CNY 20.82 and total revenues of CNY 1,081.36 billion. These figures suggest an improvement over last year's performance, which saw an EPS of CNY 17.73 and revenues amounting to CNY 1,046.24 billion.
Investors will have access to real-time tracking of JD.com's stock performance on the day of the earnings release through RoboEddy's data services, providing a comprehensive view of the company's market position and growth trajectory.
InvestingPro Insights
According to InvestingPro, JD.com holds more cash than debt on its balance sheet, indicating a strong financial position despite the challenging market environment. The net income of the company is expected to grow this year, aligning with the positive projections for the fiscal year. However, the company suffers from weak gross profit margins, which may be a concern for potential investors.
InvestingPro's real-time data reveals JD.com's market cap to be 40.5B USD, with a P/E Ratio of 18.66. The company's revenue for the last twelve months as of Q2 2023 stands at 147452.07M USD, reflecting a growth of 6.79%. Despite the recent downturn in its stock price, JD.com's low revenue valuation multiple suggests it may be undervalued, offering potential upside for investors.
InvestingPro offers additional tips and insights into JD.com and other companies, providing valuable information for investors. With InvestingPro, you can gain access to a wealth of data and advice to help you make informed investment decisions.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.