JD.com (NASDAQ:JD), a leading Chinese e-commerce company, reported a significant beat on its fourth-quarter earnings and revenue, surpassing analyst expectations. The company announced adjusted earnings per share (EPS) of RMB5.30, which was RMB0.79 higher than the analyst estimate of RMB4.51. Revenue for the quarter was RMB306.1 billion, also topping the consensus estimate of RMB299.7 billion. This represents a 3.6% increase from the fourth quarter of 2022, indicating a steady growth trajectory for the company.
The earnings report was accompanied by the announcement of a new share repurchase program, which allows JD.com to buy back up to US$3.0 billion worth of its shares, including American Depositary Shares (ADSs), over the next 36 months through March 2027. Following the earnings release and buyback announcement, JD.com's stock price soared by 10.63%, reflecting a strong vote of confidence from investors.
JD.com's adjusted net income for the quarter rose to RMB8.4 billion (US$1.2 billion), a 9.9% increase from the RMB7.7 billion reported in the same period last year. The company's net income attributable to ordinary shareholders also grew by 11.8% to RMB3.4 billion (US$0.5 billion), compared to RMB3.0 billion for the fourth quarter of 2022. The full-year figures followed a similar upward trend, with a notable increase in both net income and adjusted net income attributable to shareholders.
"We were pleased to finish 2023 on a strong note, with upticks in both revenues and profitability for the fourth quarter," said Sandy Xu, Chief Executive Officer of JD.com. "Our proactive actions have begun to produce results as our decisive focus on user experience, price competitiveness, and platform ecosystem drives deeper and more frequent user engagement and healthier user growth momentum."
Analysts highlighted the company's success in its core home appliance and electronics categories, as well as the general merchandise category, which returned to a growth trajectory in the quarter.
The company approved an annual cash dividend for the year ended December 31, 2023, of US$0.38 per ordinary share, or US$0.76 per ADS, with an expected payment date on or around April 23, 2024, for holders of ordinary shares and April 29, 2024, for holders of ADSs.