Chinese e-commerce giant JD.com posted earnings and revenue that topped expectations early Wednesday. U.S.-listed JD stock gapped up .
For the quarter ended Sept. 30, JD earned 92 cents per U.S.-listed share on sales of $34 billion. Analysts expected earnings of 81 cents per share on sales of $33.8 billion, according to FactSet.
In the same quarter last year, the Beijing-based JD reported adjusted earnings of 87 cents per share on sales of $33.6 billion.
On the stock market today, JD stock climbed 7% to close at at 28.59.
Discounts To Boost E-Commerce Sales
JD is among China's largest e-commerce companies, competing with Alibaba and PDD Holdings. The company also provides supply-chain technology and services.
In response to consumers cutting back spending this year, JD has focused on discounting prices.
"We reported steady top-line performance for the quarter with record profitability driven by our proactive efforts on enhancing price competitiveness and platform ecosystem, as well as our supply chain advantages," said JD Chief Executive Sandy Xu in a news release.
JD's retail revenues climbed about 1% year over year to $29.1 billion.
JD Stock: Down 52% This Year
However, JD's stock has been hurt by broader concerns about the Chinese economy. JD's American-listed shares were down 52% on the year as of Tuesday's closing price.
JD stock took a hit last month when several analysts lowered their target price and revenue estimates for the company. Most reports cited concerns about the broader Chinese economy.
New consumer spending data from China may have also helped boost confidence in JD stock. Retail sales rose 7.6% in October compared with the same period last year, according to new numbers from China's National Bureau of Statistics. That marked an improvement from September's 5.5% year-over-year growth.
The company's shares rank 13 out of 60 stocks in IBD's Retail-Internet industry group, according to IBD Stock Checkup.
JD stock has a weak IBD Composite Rating of 44 out of 99. IBD's Composite Rating combines fundamental and technical metrics for an overview of a stock's strengths. The best-rated growth stocks have a Composite Rating of 90 or better.
