China's JD.com beats quarterly revenue estimates, shares rise

China's JD.com Inc beat analysts' estimates for quarterly revenue on Friday, boosted by stronger sales in its core e-commerce business, sending its shares up nearly 7% before the bell.

Internet companies JD.com and bigger rival Alibaba Group Holding Ltd are looking at other areas for diversification to deal with slowing growth in domestic e-commerce business, against the backdrop of the ongoing U.S.-China trade tensions.

The company's total net revenue rose 28.7% to 134.8 billion yuan (£15 billion) in the third quarter ended Sept. 30. Analysts were expecting revenue of 128.6 billion yuan, according to IBES data from Refinitiv.

The company forecast net revenue between 163 billion yuan and 168 billion yuan in the fourth quarter. Analysts were expecting revenue of 163.54 billion yuan.

"Customer growth also remained solid, reflecting our commitment to becoming China's top source for quality products at everyday low prices," Chief Financial Officer Sidney Huang said.

JD.com has entered new businesses, such as convenience stores and supermarkets and is also investing in AI to improve its logistics and advertising capabilities.

Net service revenues rose 47% to 16 billion yuan in the third quarter. Net product revenue rose nearly 27% to 118.85 billion yuan.

Net income attributable to ordinary shareholders fell to 612.3 million yuan from 3 billion yuan.