FX.co ★ JD.com Q4 Earnings Surge, Beat View; Stock Up In Pre-market; To Buy Back Up To $3 Bln Of Shares

JD.com, Inc., a leading supplier of technology-based services, reported significant increases in earnings and revenue for the fourth quarter year-on-year on Wednesday. This financial feat has outperformed market expectations.

In response to this positive news, JD's stocks experienced an approximate 11% rise in premarket trading. Moreover, the company announced potential plans to repurchase up to $3.0 billion of its shares over the next three years until March 2027, succeeding its existing stock buyback program that is set to terminate on March 17.

JD reported that its quarter earnings rose by 11.8% to RMB 3.4 billion or $0.5 billion, experiencing an increase from RMB 3.0 billion or $0.4 billion from the previous year. Earnings per American Depositary Share (ADS) also escalated to RMB 2.13 per share or $0.30 per share from RMB 1.91 or $0.28 per share last year.

Excluding specific items, quarter earnings per ADS stood at RMB 5.30 or $0.75 per share contrasted with RMB 4.81 or $0.70 per share from last year. An average of 17 analysts polled by Thomson Reuters forecasted earnings of $0.63 per share for the quarter. Such estimates typically disregard special items.

JD also saw a 3.6% rise in net revenues to RMB 306.1 billion or $43.1 billion, an increase from RMB 295.45 billion or $42.8 billion the previous year. The market had projected a revenue of $42.16 billion.

Furthermore, the company declared an annual cash dividend of $0.38 per share or $0.76 per ADS, due to be paid on April 23 for regular shareholders and April 29 for ADS holders. In pre-market trading, JD shares are being traded at $23.70 on the Nasdaq, marking an increase of 10.54%.