Shares of JD.com Inc. JD, +6.32% sank 6.5% toward a near two-year low in premarket trading Thursday, after the China-based e-commerce reported fourth-quarter swung to a net loss but saw adjusted profit and revenue top forecasts, while margins took a slight hit. The net loss for the quarter was RMB5.16 billion ($810.4 million), or RMB3.33 per American depositary share (ADS), after net income of RMB24.33 billion, or RMB15.18 per ADS, in the year-ago period. Excluding nonrecurring items, adjusted earnings per ADS rose to RMB2.21 from RMB1.49 to beat the FactSet consensus of RMB1.78. Revenue grew 23.0% to RMB275.91 billion ($43.30 billion), above the FactSet consensus of RMB274.41 billion, as net product revenue rose 22.1% and net service revenue increased 28.3%. Cost of revenue rose 23.6% to RMB238.78 billion, to lower profit as a percent of sales to 13.45% from 13.88%. Annual active customers increased 20.7% to 569.7 million. The stock, which is on track to open below the 21-month closing low of $58.69 on March 8, has tumbled 21.7% over the past three months through Wednesday, while the iShares MSCI China ETF MCHI, +1.95% has dropped 18.5% and the S&P 500 SPX, +2.57% has lost 9.2%.
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