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New Businesses Strength to Aid JD.com's (JD) Q2 Earnings
JD.com, Inc. JD is slated to report second-quarter 2020 results on Aug 17.
The company’s New Businesses segment, which comprises logistics services, technology services and overseas businesses, is likely to have benefited the second-quarter performance.
Moreover, JD.com has been investing heavily in advanced technologies, logistics and real estate with the aim of expanding its logistics presence over the past few years. This has been aiding the company in gaining traction in the rapidly growing logistics and delivery market
We believe the segment might have contributed significantly to the company’s second-quarter results backed by its deepening focus on lower-tier cities and growing technology initiatives.
Click here to know how the company’s overall second quarter performance is likely to be.
JD.com, Inc. Revenue (TTM)
JD.com, Inc. revenue-ttm | JD.com, Inc. Quote
Factors to Note
JD.com’s strengthening momentum across third-party logistics and advertising revenues is expected to have driven the company’s logistics and other services revenues. This, in turn, might get reflected in the second-quarternet services revenues.
Moreover, expanding 24-hour delivery service in the lower-tier cities may have aided JD Logistics in gaining traction in these cities during the to-be-reported quarter. Also, strengthening logistics network in these cities is anticipated to have contributed to the second-quarter performance.
Further, the company’s constant focus toward enhancing fast delivery services might get reflected in the to-be-reported quarter’s performance.
Additionally, expanding external order volume may have benefited JD.com’s economies of scale in the to-be-reported quarter.
Further, growing technology initiatives of the company is expected to have favoured the segment’s user momentum and operational efficiency in the second quarter.
Notably, the integration of Artificial Intelligence technology into its warehouse network is anticipated to have continued accelerating the delivery of the company’s direct sales orders services during the quarter under review.
Zacks Rank & Key Picks
JD.com currently flaunts a Zacks Rank #1 (Strong Sell).
Some other top-ranked stocks in the retail-wholesale sector are At Home Group Inc. HOME, Papa Johns International, Inc. PZZA and AutoNation, Inc. AN. All the three stocks sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Long-term earnings growth rate for At Home Group, Papa Johns and AutoNation is currently pegged at 38.77%, 8% and 4.71%, respectively.
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