China Automotive Systems, Inc. Fourth Quarter Earnings Sneak Peek

China Automotive Systems, Inc. (NASDAQ:CAAS) will unveil its latest earnings on Tuesday, June 21, 2011. China Automotive Systems, Inc. is a holding company, which 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 analyst is estimating net income of 28 cents per share, a decline of 17.6% from the same quarter a year ago. Estimates range from profit of 25 cents per share to net income of 33 cents per share. The consensus estimate is the same as three months ago.

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Wall St. Revenue Expectations: On average, analysts predict $95.7 million in revenue this quarter, a rise of 14.2% from the year ago quarter. Analysts are forecasting total revenue of $339.7 million for the year, from last year’s revenue of $255.6 million.

Analyst Ratings: Analysts are bullish on this stock with five analysts rating it as a buy and none rating it as a sell. While the average rating for the stock remains a moderate buy, the rating is on steadier footing than three months ago.

Key Stats:

Revenue has now gone up for three straight quarters. In third quarter of the last fiscal year, revenue rose 17.7% to $76.1 million while the figure rose 36.2% in second quarter from the year earlier.

The company’s gross margin shrank by 3.4 percentage points in the last quarter. Revenue rose 17.7% while cost of sales rose 23.2% to $57.9 million from a year earlier.

Competitors to Watch: Sorl Auto Parts, Inc. (NASDAQ:SORL), Tenneco Inc. (NYSE:TEN), Wonder Auto Tech., Inc. (NASDAQ:WATG), Meritor Inc (MTOR), TRW Automotive Hldgs. Corp. (NYSE:TRW), Tower International (NYSE:TOWR), Dana Holding Corporation (NYSE:DAN), American Axle & Manufact. Hldgs., Inc. (NYSE:AXL), and Federal-Mogul Corporation (NASDAQ:FDML).

Recent Price Movement: From two months ago, the stock price has fallen $2.72 (-28%) from $9.70 on April 15, 2011 to $6.98 on June 13, 2011. The stock price saw one of its best stretches over the last year between June 15, 2010 and June 21, 2010 when shares rose for five-straight days, rising 6.5% (+$1.25) over that span. It saw one of its worst periods between May 10, 2011 and May 18, 2011 when shares fell for seven-straight days, falling 11.2% (-99 cents) over that span. Shares are down $6.64 (-48.8%) year to date.

(Source: Xignite Financials)

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