Wonder Auto Q2 EPS Increases, Beats Estimate
2009-08-05 Source：
Automotive electrical parts and engine accessories maker Wonder Auto Technology, Inc. (WATG) reported Monday a $0.03 increase in adjusted earnings per share for the second quarter that came in above analysts' estimate, reflecting a 35.4% growth in revenues.
For the second quarter, net income attributable to Wonder Auto increased slightly to $5.38 million from $5.27 million in the previous year. On a per-share basis, earnings remained flat with last year at $0.20.
Net finance costs increased to $1.9 million from $566.6 thousand in the same period last year, reflecting a non-cash exchange loss of $710 thousand compared to an exchange gain of $299 thousand a year ago.
Excluding exchange loss/gain, earnings increased to $0.22 per share from $0.19 per share last year. On average, six analysts polled by Thomson Reuters expected the company to report earnings of $0.20 per share in the second quarter. Analysts' estimates typically exclude special items.
Sales revenues for the quarter surged 35.4% to $49.65 million from $36.66 million, helped by higher sales volume of alternators and starters and the inclusion of engine valves and tappets. Six analysts were expecting revenue of $45.79 million in the second quarter.
The Jinzhou City, Liaoning, China-based company's export rose 26.6% year-over-year to $6.5 million. Sales revenue from alternators and starters was about $32.4 million, down 1.9%, chiefly attributable to lower average selling prices as a large portion of revenue was from mid-to-small displacement vehicles, and also higher percentage of starters in the mix, which had lower average selling prices. Sales revenue from rods and shafts grew 30.1% to $4.7 million from the prior-year period.
Total operating expenses went up 74.4% to around $4.7 million from $2.7 million, as administrative costs increased 92.6% to $2.8 million, and selling expenses increased 52.6% to $1.5 million. Operating costs increased year-over-year mainly because of the consolidation of the financial results of Yearcity, the company said.
Looking ahead, for the third quarter of 2009, the company expects to record net income over $6.3 million on sales revenue above $55.5 million. Analysts estimate earnings of $0.23 per share and revenues of $55.27 million for the quarter.
WATG closed Friday's regular trading hours at $11.23 on the NYSE.
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