Monday, Wonder Auto Technology, Inc. (WATG), a manufacturer of automotive parts in China, reported an increase in third quarter earnings, as revenues surged 50% helped by recently acquired subsidiary, Jinan Worldwide, and increased demand for starter and alternator products. The company also provided forecast for fiscal 2009.
The Jinzhou City, Liaoning, China-based company's net income attributable for the stockholders for the quarter increased 2.4% to $6.5 million from $6.4 million in the corresponding period last year. Earnings per share remained flat at $0.24 per share for both periods.
On a non-GAAP basis, net income increased 25.8% to $6.9 million or $0.26 per share from $5.5 million or $0.20 per share in the year-ago quarter. Non-GAAP net income excludes non-cash exchange gain/loss in connection with a loan denominated in euro.
On average, five analysts polled by Thomson Reuters expected the company to report earnings of $0.24 per share for the quarter. Analysts' estimates typically exclude special items.
Sales revenue increased by about 50.2% to $58.96 million from $39.3 million of the same period last year and came in above the Street analysts' estimate of $57.28 million. Organic revenue in China amounted to $41.0 million, an increase of 24.1% on year-over-year basis, excluding contribution from acquisition.
The company attributed the increase to $12.9 million in additional revenues generated in the third quarter of 2009 by recently acquired subsidiary, Jinan Worldwide, and increased sales volume of starter and alternator products due to the high market demand.
For the nine-month period, net income rose to $17.05 million or $0.63 per share from $15.6 million or $0.58 per share in the prior-year quarter. Revenue rose to $148.6 million from $107.04 million in the year-ago period.
Looking ahead, the company expects net income of $23 million on sales of $208 million for 2009. Analysts currently expect the company to earn $0.86 per share on sales of $204.27 million for 2009.
WATG is currently down $0.34 or 2.63% and trades at $12.60.
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