Sorl Auto Parts Beats Revenue Estimates; Stock Jumps 10%
The company, which makes auto parts, reported improved profit and revenue for the fourth quarter.
Sorl Auto Parts Inc. (Nasdaq: SORL) saw its shares soar more than 10 percent midday Monday to $3.17 apiece after the company said its net income in the fourth quarter was 15 percent higher year-over-year and its revenue beat estimates.
The Zhejiang-based company, which makes brake systems and other auto parts, announced today that its income for the three months through December reached $3.3 million, or 17 cents per share.
Net sales were $123.3 million, nearly level compared with the same period a year earlier. However, revenue beat analysts' estimates, rising 14 percent to $71.4 million domestically and 20 percent internationally to $22.2 million.
For the full year 2018, Sorl reported net sales of $468 million, at a 20 percent increase from 2017. Net income last year declined in half to $12.7 million, or 66 cents per share, the company said.
"We are pleased to report robust growth in sales to Chinese OEM market in the fourth quarter and another record top line in 2018, especially in the weakening economy in China," Sorl's chairman and chief executive officer, Xiaoping Zhang, said in a statement.
The company's chief operating officer, Jinrui Yu, added, that Sorl had invested more than $55.4 million in property, plant, and equipment last year in efforts to improve its capacity.
"Our strengthened research and development program continues to develop technologies positioning us for ongoing growth in the future," Yu said.
Sorl's total operating expenses grew 37 percent in 2018 to $98.5 million, according to the report.
Looking ahead, the company said it expects net sales to reach $515 million and income of approximately $22 million.