China Green Agriculture, Inc. (CGA), a producer and distributor of humic acid based compound fertilizer through its wholly owned subsidiary, Shaanxi TechTeam Jinong Humic Acid Product Co., Ltd. Wednesday, announced that its profit for the first-quarter increased 50% from the previous year quarter.
The company recorded net income for the quarter of $5.2 million or $0.24 per share, compared to $3.5 million or $0.19 per share for the previous year quarter.
Analysts polled by Thomson Reuters expected the company to report profit of $0.20 per share for the quarter. Analysts' estimates typically exclude special items.
In the first quarter of 2010, the weighted average shares outstanding were 21.6 million shares including the shares issued in public offering in July 2009, versus 18.4 million shares in the year ago period.
Gross profit for the first quarter of fiscal year 2010 totaled $7 million, an increase of 41% from $5.0 million in the same quarter last year, while the gross profit margin was 62% for the first quarter of fiscal year 2010, up from 56% last year.
Tao Li, Chairman, President and Chief Executive Officer of China Green Agriculture said, "While our margins have historically been the highest in the organic fertilizer industry, we were able to expand our margins due to the increasing sales of our new high margin products. "
Net sales for the quarter increased 27% to $11.3 million from $8.9 million for the previous year quarter. Analysts expected revenues of $10.95 million for the quarter. For the second-quarter, the company expects revenues of $10.4 million-$11.0 million, net income of $4.2 million-$4.6 million, and earnings per share in the range of $0.18-$0.20, respectively.
Two analysts expect earnings of $0.19 per share on revenues of $10.85 million for the second quarter.
For fiscal 2010, the company increased its guidance and now expects revenues of $47.9 million-$49.8 million, net income of $19.7 million-$20.6 million, and earnings per share in the range of $0.88-$0.92, respectively. Earlier, the company anticipated revenues of $46.8 million to $49.4 million and earnings of $0.83 to $0.88 per share.
Analysts expect earnings of $0.85 per share on revenues of $48.60 million for the full year.
"The recent increase of our production capacity coupled with our growing nationwide distribution network will allow us to drive revenue and earnings throughout the year as we build on being one of the leading organic compound fertilizer producers in China," said Li.
CGA closed Wednesday's regular trading at $13.24 up $0.29 or 2.24% on a volume of 0.653 million shares on the AMEX, and in the after hours tradig the stock price increased to $13.35 up $0.11 or 0.83%.
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June 12, 2026 17:14 ET Major central bank action was the focus this week in economic news. The European Central Bank became the first major central bank to move in response to the rising inflationary pressures in the backdrop of the conflict in the Middle East. In North America, the U.S. inflation and trade data as well as Canada’s central bank decision gained attention. The Chinese trade data was the main news in Asia.