Business Corpus: JD.com Earnings Report Due Amid Tough Competition From AlibabaChina internet giant JD.com reports first-quarter earnings before the market open Tuesday, during a period of intense competition in the e-commerce field. The post JD.com Earnings Report Due Amid Tough Competition From Alibaba appeared first on Investor's Business Daily.

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China internet giant JD.com (JD) reports first-quarter earnings before the market open Tuesday during a period of intense competition in the e-commerce field.

Analysts predict the company will report revenue of $15.5 billion, up 30% in local currency. They see adjusted earnings at 14 cents a share, vs. 15 cents in the year-ago quarter.

It follows the quarterly earnings report of Alibaba (BABA) last Friday, which beat views. Alibaba and JD.com are the two largest internet companies in China, but with different business models. Alibaba is the largest in terms of gross merchandise volume, while JD.com handles more direct sales.

Cowen analyst John Blackledge has a rating of market perform on JD.com and a price target of 44. The company is well positioned to capture market share in the $300 billion and fast-growing Chinese e-commerce market, he said.

"We expect JD to report solid first-quarter results given customer growth, as JD expands into new categories and broadens to lower-tier cities," Blackledge wrote in a note to clients Monday. "Revenue growth is strong but margins are constrained given JD remains in investment mode."

JD.com Price Lowered

In mid-April, KeyBanc Capital Markets analyst Hans Chung lowered his price target on JD.com to 51 from 55. He cited higher costs in fulfillment, hikes in research and development, and margin pressure from competition.

Shares rose 1.9%, near 38.40 during afternoon trading on the stock market today. Alibaba, up 3.2% near 195, received several price-target increases Monday.

Three months ago, JD.com reported fourth-quarter earnings that missed estimates amid stiff competition and large investments in new projects.

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