China Automotive Systems Inc. Third Quarter Earnings Sneak Peek

China Automotive Systems, Inc. (NASDAQ:CAAS) will unveil its latest earnings on Tuesday, November 8, 2011. 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 15 cents per share, a decline of 37.5% 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 29 cents. Between one and three months ago, the average estimate moved down. It has been unchanged at 15 cents during the last month. Analysts are projecting profit to rise by 32.7% versus last year to 74 cents.

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 $82 million in revenue this quarter, a rise of 7.8% from the year ago quarter. Analysts are forecasting total revenue of $359.8 million for the year, a rise of 4% from last year’s revenue of $345.9 million.

Analyst Ratings: Analysts are bullish on China Automotive Systems as two analysts rate it as a buy, none rate it as a sell and two rate it as a hold.

A Look Back: In the second quarter, profit fell 49.1% to $4.3 million (14 cents a share) from $8.5 million (28 cents a share) the year earlier, missing analyst expectations. Revenue fell 3% to $82.5 million from $85.1 million.

Key Stats:

A year-over-year revenue decrease in the second quarter snapped a streak of three consecutive quarters of revenue increases. Revenue rose 8.1%in the first quarter, 20% in the fourth quarter of the last fiscal year and 17.7% in the third quarter of the last fiscal year.

The decrease in profit in the second quarter broke a streak of two consecutive quarters of year-over-year profit increases. Net income rose 90% in the first quarter and more than threefold in the fourth quarter of the last fiscal year.

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 October 5, 2011 to November 2, 2011, the stock price had risen 38 cents (8%) from $4.76 to $5.14. 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 9, 2011 and September 15, 2011 when shares rose for five-straight days, rising 8.8% (+42 cents) over that span. Shares are down $8.48 (-62.3%) year to date.

(Source: Xignite Financials)

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