JD stock rises after profit beat and dividend initiated, while revenue comes up shy

The U.S.-listed shares of JD.com Inc.
JD,
+0.88%
rose 1.0% in premarket trading Thursday, after the China-based ecommerce company beat fourth-quarter profit expectations and initiated a dividend, but missed revenue expectations. The company swung to net income of RMB3.03 billion ($441 million), or RMB1.91 per American depositary share (ADS), from a loss of RMB5.17 billion, or RMB3.33 a share, in the year-ago period. Excluding nonrecurring items, adjusted earnings per ADS of RMB4.81 beat the FactSet consensus of RMB3.57. Revenue grew 7.1% to RMB295.45 billion ($42.84 billion), just below the FactSet consensus of RMB296.43 billion, as net product revenue increased 1.2% while net service revenue jumped 40.3%. “Looking ahead, amidst ever-evolving opportunities and challenges we will stay focused on lowering costs, increasing efficiency and constantly improving user experience,” said Chief Executive Lei Xu. Separately, the company ADS holders as of April 6 will be paid a dividend of 62 cents per ADS to on May 4. JD said it plans to adopt an annual dividend policy starting 2023. JD’s stock has dropped 19.4% over the past three months through Wednesday, while the iShares MSCI China exchange-traded fund
MCHI,
-0.76%
has eased 0.7% and the S&P 500
SPX,
+0.14%
has gained 1.5%.