JD.com stock soars after adjusted profit nearly doubles, beating expectations thanks to large margin

U.S. custody shares of JD.com Inc.
JD,
+7.53%

jumped 2.8% to a 2-month high in premarket trading on Friday, after the China-based e-commerce company reported third-quarter profit that nearly doubled year-over-year. hope. The company achieved a net income of RMB 5.96 billion ($839 million), or RMB 3.57 per ad, from a net loss of RMB 2.81 billion, or RMB 1.81 per ad in the same period last year. Excluding non-recurring items, adjusted earnings per ADS increased to RMB 6.27 from RMB 3.16, well above FactSet consensus of RMB 4.86. Revenue rose 11.4% to 243.55 billion yuan ($34.24 billion), beating FactSet’s consensus estimate of 242.96 billion yuan, as net product sales rose 5 percent, 9% to 197.03 billion yuan and net service revenue up 42.2% to 46.51 billion yuan. Adjusted operating margin improved from 2.1% to 4.1%, year-over-year active customers increased by 6.5% to 588.3 million and inventory decreased by 5.1% to RMB 71.76 billion as of September 30. Shares rose 4.2% in the three months to Thursday, while the iShares China Large-Cap ETF
Forex,
+2.36%

fell 8.3% and the S&P 500
SPX,
-0.31%

fell 7.9%.