Chinese integrated human resource services provider 51job, Inc. (JOBS) reported Wednesday a profit for the third quarter that surged from last year, reflecting improved margins and strong double-digit revenue growth amid increase in online recruitment services revenues. The company also issued earnings and revenues guidance for the fourth quarter, above Street view.
"Led by the diligent execution of our strategic plan, we achieved solid revenue growth and profitability in the third quarter. In the online business, we extended our dedicated sales coverage, which now serves 75 cities in China, and meaningfully increased average spending per employer," President and CEO Rick Yan said in a statement.
The Shanghai, China-based company reported net income of 97.50 million yuan or $15.29 million for the third quarter, 55 percent higher than 62.94 million yuan in the prior-year quarter. Earnings per share grew to 1.65 yuan or $0.26 from 1.10 yuan a year earlier.
On American Depository share basis, earnings increased to 3.30 yuan or $0.52 from 2.20 yuan last year.
Excluding items, adjusted net income for the quarter surged to 111.57 million yuan or $17.49 million from 72.02 million yuan in the year-ago quarter. Adjusted earnings per share grew to 1.89 yuan or $0.30 from 1.26 yuan a year earlier.
On American Depository share basis, adjusted earnings increased to 3.77 yuan or $0.59 from 2.52 yuan last year.
Total revenues for the quarter increased 26.4 percent to 343.28 million yuan or $53.82 million from 271.65 million yuan in the same quarter last year.
Analysts polled by Thomson Reuters expected the company to report earnings of $0.53 per share on revenues of $50.90 million for the third quarter. Analysts' estimates typically exclude special items.
Online recruitment services revenues surged 49.0 percent to 212.7 million yuan or $33.4 million, reflecting greater number of unique employers using the online recruitment services as well as higher average revenue per unique employer.
However, print advertising revenues decreased 30.8 percent, while other human resource related revenues increased 31.0 percent from last year.
Operating margin expanded 760 basis points to 34.4 percent from last year, as gross margin improved 400 basis points, and operating expenses as a percentage of net revenues contracted 360 basis points.
Looking ahead to the fourth quarter, the company projects adjusted earnings in a range of 1.85 to 1.95 yuan per share or $0.58 to $0.61 per ADS, on projected revenues between 360 million yuan to 370 million yuan, or $56.4 million and $58.0 million.
Street is looking for fourth-quarter earnings of $0.52 per share on revenues of $55.75 million.
"A longstanding leader and trusted brand in the HR services market in China, we continue to focus on opportunities to consolidate our position, drive profitable growth and deliver returns to our shareholders," Yan added.
JOBS closed Wednesday's regular trading session at $44.04, down $1.68 or 3.67% on a volume of 0.11 million shares. The stock lost a further $3.04 or 6.90% in after-hours trading.
For comments and feedback contact: editorial@rttnews.com
Business News
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.