China Automotive Systems First Quarter Earnings Sneak Peek

China Automotive Systems, Inc. (NASDAQ:CAAS) will unveil its latest earnings on Wednesday, May 9, 2012. China Automotive Systems is a holding company that, through joint ventures in China and a wholly-owned subsidiary, manufactures power steering systems and other component parts for automobiles.

China Automotive Systems, Inc. Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average estimate of analysts is for profit of 14 cents per share, a decline of 36.4% from the company’s actual earnings in the year-ago quarter. During the past three months, the average estimate has moved down from 17 cents. Between one and three months ago, the average estimate was unchanged. It has since dropped over the last month. Analysts are projecting profit to rise by 1833.3% versus last year to 58 cents.

Past Earnings Performance: The company showed net income of 14 cents per share versus a mean estimate of profit of last quarter. This marks the fourth month of falling short of estimates.

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Wall St. Revenue Expectations: Analysts are projecting a decline of 0.3% in revenue from the year-earlier quarter to $90.8 million.

A Look Back: In the fourth quarter of the last fiscal year, profit fell 72.9% to $6.7 million (19 cents a share) from $24.7 million (22 cents a share) the year earlier, missing analyst expectations. Revenue fell 0.7% to $100.9 million from $101.6 million.

Key Stats:

On the top line, the company is hoping to use this earnings announcement to snap a string of three-straight quarters of revenue declines. Revenue fell 3% in the second quarter of the last fiscal year and 1.4% in third quarter of the last fiscal year before falling again in the fourth quarter of the last fiscal year of the last fiscal year.

The company is hoping to rebound with this earnings release after a net income drop last quarter. Net income rose 23.4% in the third quarter of the last fiscal year before dropping in the fourth quarter of the last fiscal year of the last fiscal year.

Stock Price Performance: Between April 4, 2012 and May 3, 2012, the stock price dropped $1.74 (-25.6%), from $6.81 to $5.07. The stock price saw one of its best stretches over the last year between February 17, 2012 and February 28, 2012, when shares rose for seven straight days, increasing 28.7% (+$1.44) over that span. It saw one of its worst periods between May 9, 2011 and May 18, 2011 when shares fell for eight straight days, dropping 13.8% (-$1.25) over that span.

(Company fundamentals by Xignite Financials. Earnings estimates provided by Zacks)

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