With quarterly earnings of $0.13 per share, China Automotive Systems revved past the Zacks Consensus Estimate of $0.01 per share, as the company announced its financial results for the third quarter.
This quarterly report is a 1.200 billion earnings shock. A quarter later, this car parts manufacturer was expected to earn $0.01 a share when it earned $0.08, delivering a 700 percent surprise.
The organization has met the average earning per share (EPS) expectations three times over the last four years.
China Automotive Systems, a member of the Zacks Automotive-Original Equipment Group, - and a leading power steering components and systems supplier in China - reported $100.54 million in revenue for the quarter ended September 2019, missing just 3.70 percent of its ZCE.
This compares to $112.08 million annual revenues. Over the last four years, the organization has not been able to beat analyst expectations in terms of sales.
The stability of the immediate price movement of the stock based on the newly released figures and future earnings projections would rely mostly on the earnings call statement from the management.
Since the start of the year, China Automotive Systems' stocks have fallen almost 18 percent relative to the S&P 500's 23.1 percent rise.
Net sales were $100.5 million in the third quarter of 2019, compared with $112.1 million in the same quarter last year. The decline in gross product sales is due primarily to a shift in product mix and lower domestic sales volume due to lower competition in the local car label industry in China.
Net sales of goods in North America rose by 11.7 percent to $33.8 million compared with $30.3 million in the same period of 2018. The increase in export sales to North America was due primarily to higher sales of the more advanced products of the company.
Net sales of services for the company's electrical power steering (EPS) goods contributed to $18.5 million, or 18.5 percent of net sales.
In the third quarter this year, the gross profit was $17.3 million, compared to $15.4 million in the third quarter of 2018. The gross margin for the same period of 2018 was 17.2 percent compared to 13.6 percent, mainly due to changes in the product mix.
Meanwhile, the company's research and development investment this year hit $6.1 million, relative to $7.0 million last year. R&D investment accounted for 6.2 percent of net sales relative with 6.2 percent in the same period last year. The reduced budget is largely due to more rigorous cost controls on R&D and other ventures.
