JD.com stock falls after turning into a net loss, as adjusted earnings beat expectations

Shares of JD.com Inc. JD,
+6.32%
fell 6.5% to a nearly two-year low in premarket trading on Thursday, after the China-based e-commerce said the fourth quarter tipped to a net loss but saw the best forecast for earnings and revenue adjusted, while margins were slightly affected. Net loss for the quarter was RMB5.16 ​​billion ($810.4 million), or RMB3.33 per American Depository Share (ADS), after net profit of RMB24.33 billion. RMB, or 15.18 RMB per ADS, in the prior year period. . Excluding non-recurring items, ADS-adjusted profit rose from RMB 1.49 to RMB 2.21 to beat the FactSet consensus of RMB 1.78. Revenue increased 23.0% to 275.91 billion RMB ($43.30 billion), above the FactSet consensus of 274.41 billion RMB, as net product revenue increased 22, 1% and net income from services by 28.3%. Revenue cost increased by 23.6% to RMB 238.78 billion, which lowered profit as a percentage of sales to 13.45% from 13.88%. The number of annual active customers increased by 20.7% to 569.7 million. The stock, which is poised to open below the 21-month closing low of $58.69 on March 8, has fallen 21.7% in the three months to Wednesday, while iShares MSCI China ETF MCHI,
+1.95%
fell 18.5% and the S&P 500 SPX,
+2.57%
lost 9.2%.

Ann J. Cox