China's JD.com Beats Revenue Estimates, Forecasts Upbeat Q3 Sales

BEIJING, China — China's JD.com Inc posted better-than-expected quarterly revenue and forecast third quarter sales above Wall Street estimates on Tuesday, boosted by stronger sales in its online retail business.

Shares of the company were up about 5 percent at $28.49 before the bell.

Sales from its product segment, which includes online retail sales, rose about 21 percent to ¥133.52 billion (around $18,95 billion) during the quarter.

Both JD.com and bigger rival Alibaba Group Holding Ltd are seeking to diversify amid slowing e-commerce revenue growth at home - in part due to saturated markets in China's biggest cities, flagging consumer confidence from the US-China trade war.

For the third quarter, JD expects revenue between 126 billion yuan and 130 billion yuan, the mid-point of which was above analysts' estimate of ¥126.21 billion (around $17,92 billion), according to IBES data from Refinitiv.

The company's total net revenue rose 22.9 percent to ¥150.28 billion (around $21.28 billion) in the second quarter ended June 30. Analysts were expecting revenue of ¥147.49 billion (around $20,94 billion), according to IBES data from Refinitiv.

JD.com posted a net income attributable to ordinary shareholders of ¥618.8 million (around $87,85 billion) compared with a net loss of ¥2.21 billion (around $313,74 billion), a year earlier.

Excluding items, company reported net income of ¥2.30 per American Depository Share compared with ¥0.33 per ADS, a year ago. ($1 = 7.0625 Chinese yuan renminbi)

By Akanksha Rana and Josh Horwitz; editor: Shailesh Kuber.