FactSet’s consensus forecast puts JD.com’s third-quarter net profit at 7.265 billion yuan ($1.09 billion), up from 5.28 billion yuan a year earlier. Revenue is also expected to increase, as analysts weigh losses in newer businesses against competition and consumer demand.
The Beijing-based e-commerce company is scheduled to report results next Tuesday. FactSet estimates revenue of 308.12 billion yuan for the quarter, compared with 299.06 billion yuan in the same period last year. JD.com’s Hong Kong-listed shares rose 5.1% in the third quarter as the company navigated a volatile market environment.
Analysts expect losses in new businesses, including food delivery and overseas operations, to narrow from the previous quarter. Jefferies analysts said in a research note that food delivery losses likely fell by more than half year on year. Citi analysts cautioned that intensifying competition in China’s e-commerce and food delivery markets could weigh on results.
Citi forecasts revenue growth of 3.5% year on year. It expects a slight decline in electronic products sales to be offset by higher revenue from general merchandise, and said results are likely to be broadly in line with expectations. The analysts will look for updates on momentum at the Single’s Day sales event and demand for the latest smartphone upgrades. Citi maintains a buy rating, while expecting weak macroeconomic trends to continue.
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