Shares of Chinese e-commerce giant JD.com (NASDAQ: JD) gained 4.8% after reporting a massive earnings surprise in the second quarter. Net income, on an adjusted basis, came in at 33 cents per share, compared to 7 cents per share expected by the Wall Street.

Net revenues spiked 23% to RMB150.3 billion (21.9 billion), beating average analysts’ projection of $20.89 billion, helped by its strong foothold in the e-commerce market. Net service revenues registered a 42% jump in the second quarter, while net product revenues increased by 20.8%.

jd.com stock earnings
Image courtesy: JD.com

At the end of the quarter, the company had 321.3 million annual active customer accounts, compared to 310.5 million a year ago.

Net revenues for the third quarter are expected to be between RMB126 billion and RMB130 billion, representing a growth rate between 20% and 24% compared with the third quarter of 2018.

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CFO Sidney Huang said, “Our economies of scale and innovative technologies are driving operating efficiency and further strengthening our business model. Looking ahead, we will continue to invest in user experience and our talented workforce to further grow the business and create value for all of our stakeholders.”

JD.com’s shares have gained 26% so far this year. A majority of analysts have rated the stock as Buy and it has a 12-month price target of $35.10.

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