China Automotive Systems Inc. Second Quarter Earnings Sneak Peek

China Automotive Systems, Inc. (NASDAQ:CAAS) will unveil its latest earnings on Wednesday, August 10, 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 estimate of analysts is for net income of 29 cents per share, a rise of 20.8% from the company’s actual earnings for the same quarter a year ago. During the past three months, the average estimate has moved down from 32 cents. Between one and three months ago, the average estimate moved down and dropped from 31 cents during the last month. For the year, analysts are projecting profit of $1.14 per share, a rise of 3.6% from last year.

Past Earnings Performance: The company is looking to come atop of analysts’ forecasts after falling short last quarter. It missed last quarter’s consensus estimate as it reported net income of 22 cents per share against a consensus estimate of profit of 32 cents per share.

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Wall St. Revenue Expectations: On average, analysts predict $96.7 million in revenue this quarter, a rise of 13.7% from the year ago quarter. Analysts are forecasting total revenue of $394.3 million for the year, a rise of 14% from last year’s revenue of $345.9 million.

Analyst Ratings: Analysts are bullish on this stock with five analysts rating it as a buy, none rating it as a sell and none rating it as a hold.

Key Stats:

Revenue has risen the past four quarters. Revenue increased 8.1% to $91 million in first quarter. The figure rose 20% in the fourth quarter of the last fiscal year from the year earlier, climbed 17.7% in the third quarter of the last fiscal year from the year-ago quarter and 36.2% in the second quarter of the last fiscal year.

The company has now been profitable for the last eight quarters, and for the last four, profit has risen year over year by an average of more than twofold. The quarter with the biggest boost was the fourth quarter of the last fiscal year, which saw a more than threefold surge.

Competitors to Watch: Sorl Auto Parts, Inc. (NASDAQ:SORL), Tenneco Inc. (NYSE:TEN), Wonder Auto Tech., Inc. (NASDAQ:WATG), 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).

Stock Price Performance: During May 10, 2011 to August 4, 2011, the stock price had fallen $2.77 (-31.4%) from $8.81 to $6.04. It saw one of its worst periods between May 9, 2011 and May 18, 2011 when shares fell for eight-straight days, falling 13.8% (-$1.25) over that span. The stock price saw one of its best stretches over the last year between September 14, 2010 and September 20, 2010 when shares rose for five-straight days, rising 4.2% (+62 cents) over that span. Shares are down $7.58 (-55.7%) year to date.

(Source: Xignite Financials)

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