JD.com Achieves Strong Earnings Growth, Launches Share Repurchase Program, and Increases Dividend
JD.com beats expectations and raises its dividend
The Chinese retailer reported fourth-quarter earnings that, while perhaps not that impressive on a stand-alone basis, did handily beat analyst estimates.
Besides the earnings beat, JD noted it would reauthorize its $3 billion share repurchase program, which will last through 2027. And the company also declared an annual dividend of $0.76, a 23% increase over the $0.62 annual dividend last year. After paying a larger special dividend in 2022, it has paid a regular annual dividend each of the last two years.
Value transformation amid challenging market
In truth, this doesn't seem like a particularly great performance, especially the advertising revenue declines. And while the overall company saw an expansion in adjusted net profit margin from 2.6% to 2.7%, the core retail segment saw operating margins fall from 3% to 2.6% amid price competition.
But given the downturn and price wars in the Chinese e-commerce space, as well as the country essentially being in recession, it was perhaps better than expected.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.