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JD.com: Analysts’ Expectations in Q1

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JD.com’s revenues

Chinese (FXI) tech heavyweight JD.com (JD) is scheduled to report its first-quarter results on May 10. Analysts expect the company to post revenues of $17.74 billion in the first quarter—a rise of 23.0% year-over-year compared to revenues of $14.43 billion in the first quarter of 2018.

JD.com’s sales are expected to grow 15% to $20.52 billion in the first quarter of 2020. JD.com’s sales are estimated to rise at a compound annual growth rate of 29% annually from $8.26 billion in the first quarter of 2016 to  $17.88 billion in the first quarter of 2019.

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EPS

While JD.com’s sales are expected to rise 23%, analysts expect the company’s non-GAAP EPS to increase 20% in the first quarter to $0.12, which indicates low operating leverage.

JD.com beat analysts’ earnings estimates in two of the last four quarters. The company posted an EPS of $0.08 in the fourth quarter—300% higher than analysts’ estimate of -$0.04. The company posted an EPS of $0.12 in the third quarter—9.1% higher than the estimate of $0.11.

As the above chart shows, JD.com reported an EPS of $0.05 in the second quarter of 2018, which was 50% below analysts’ estimates of $0.10. The company also reported an EPS of $0.10 in the first quarter of 2018, which was below analysts’ estimates of $0.12.

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