JD.com (NASDAQ:JD) reported Q3 revenue that trailed analyst estimates, but shares still rose on the bigger-than-expected profit.
Earnings per share of RMB6.70 easily topped the analyst estimate of RMB5.90. However, the quarterly revenue of RMB247.7 billion ($34.2 billion) was slightly below the consensus estimate of RMB247.58 billion.
The stock was up 4.3% in pre-open trade on Wednesday.
The company experienced challenges in China's evolving e-commerce landscape, marked by the emergence of livestream players and short video social networking service providers such as Douyin (China's TikTok) and Xiaohongshu.
“We reported steady top-line performance for the quarter with record profitability driven by our proactive efforts on enhancing price competitiveness and platform ecosystem, as well as our supply chain advantages,” said the Chief Executive Officer of JD.com.
“We continue to be encouraged by the progress we are making, as evidenced by further expanded merchant base and improved user shopping behavior. With our clear strategy to deliver value for users and business partners, and a value proposition that is optimized for the future, I am confident that JD.com is well positioned for long-term sustainable growth.”