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Why Stock Moved Higher Friday

By Daniel Sparks - May 10, 2019 at 5:44PM

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The Chinese e-commerce company just crushed estimates for its first quarter.

What happened

Shares of China-based e-commerce company (JD 2.69%) shot higher on Friday, rising as much as 10.8%.

The stock's gain follows's better-than-expected first-quarter results. But worries about the ongoing trade negotiations between the U.S. and China offset some of this gain, and shares finished the trading day up 2.4%.

A chart showing a stock price moving higher.

Image source: Getty Images.

So what reported revenue of 121.1 billion Chinese renminbi (RMB), or $18 billion. This revenue was up 21% year over year in local currency. Non-GAAP net income soared 215% year over year. Non-GAAP earnings per American depository shares (ADS) for the first quarter were 2.23 RMB, or $0.33.

Both of these figures beat analysts' average forecast for revenue and non-GAAP earnings per share of $17.7 billion and $0.12, respectively. 

"We delivered solid revenue growth in a seasonally low quarter and set new records across all major earnings metrics," said CFO Sidney Huang in the company's first-quarter earnings call.

So what

Management was optimistic about what's ahead for the company.

"We will continue to invest in key technologies and top industry talent as we work to reach an even broader customer base through cutting edge innovation," said CEO Richard Liu in the company's first-quarter earnings release. "With our growing scale and increasingly efficient operations, remains well positioned to deliver strong shareholder value for the long term."

For its second quarter, guided for revenue to rise 19% to 23% year over year in local currency.

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