Morgan Stanley has released a report predicting that JD.com (JD, Financial) will exceed market expectations for its most recent quarter. The company's revenue and profit are anticipated to grow significantly, aided by its trade-in program, which is expected to boost sales and support growth for the year.
According to Morgan Stanley, JD.com's total revenue for the past quarter is projected to increase by 10.5% year-over-year, compared to the market's expectation of a 6% rise. This growth is largely attributed to the trade-in program. The non-GAAP net profit is estimated to be 10.2 billion RMB, a 22% increase year-over-year, with a corresponding non-GAAP net profit margin of 3.02%, marking a growth of 27 basis points.
For the full year, JD.com's total revenue is expected to grow by 6.9% year-over-year, surpassing the market's forecast of a 6% increase. The non-GAAP net profit is projected to reach 50 billion RMB, a year-over-year growth of 6%, with a non-GAAP net profit margin of 4.05%. Morgan Stanley has revised its earnings estimates upwards to reflect better-than-expected results for the past quarter. Despite these optimistic projections, the firm maintains an "Equal-Weight" rating with a target price of $41.
