Monday, FUQI International, Inc. (FUQI), a designer and seller of precious metal jewelry in China, reported a 188% surge in earnings for the third quarter, which topped analysts' estimates, helped by a 35.8% increase in revenues. The company also revised its guidance for the fourth quarter and fiscal 2009.
Net income for the quarter surged 187.9% to $18.8 million from $6.5 million reported in the corresponding period last year. Earnings rose to $0.73 per share from $0.31 per share a year earlier and came in above the $0.44 per share projected by seven analysts polled by Thomson Reuters.
Revenues grew 35.8% to $127.2 million from $93.7 million in the same period last year. Seven Street analysts expected the company to report revenues of $130.32 million for the quarter.
Wholesale revenue contributed about $117.5 million, representing year-over-year growth of about 29.7%, and retail revenue contributed about $9.7 million, a 208.7% increase from $3.2 million the same period last year.
During the most recent quarter, the company opened a total of eleven new retail counters. Three counters were closed in the same period. As of September 30, 2009, the Company had a total of 72 retail counters, and a total of 7 retail stores.
The company said it plans to have a total of 95-100 retail locations by the end of 2009 and additional 80-100 retail locations in 2010.
For the nine-month period, net income rose to $38.3 million or $1.66 per share from $18.2 million or $0.86 per share in the same period last year. Net sales rose to $337.4 million from $238.1 million in the corresponding period last year.
Looking ahead, for the fourth quarter, the company expects total revenue to be in the range of about $182 million - $191.0 million and net income in the range of $15.2 million -$16.6 million, or $0.55-$0.60 per share. Currently, analysts expect the company to report earnings of $0.58 per share on sales of $184.15 million for the quarter.
For fiscal 2009, the company now expects net income of about $53.5 million - $54.9 million or earnings of $2.21 - $2.27 per share on revenue of approximately $519.4-$528.4 million. Presently analysts expect the company to report earnings of $1.93 per share on sales of $524.67 million.
FUQI is currently up $1.03 or 4.41% and trades at $24.36.
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