Friday, FUQI International, Inc. (FUQI), a designer of precious metal jewelry based in China, posted a significant increase in income and revenues for the fourth quarter, boosted by higher volume and selling prices. Also, the company provided outlook for the first quarter as well as fiscal year 2008. Shares of the company are up currently up more than 9%.
For the quarter, net income surged 253% to $7.4 million or $0.39 per share from $2.1 million or $0.15 per share in the same quarter last year. The current quarter included total non-cash compensation of about $702 thousand and the reversal of the prior years' tax provision due to a tax exemption of about $4.2 million.
Excluding these items, the company reported adjusted earnings per share of $0.21 for the quarter. On an average, 2 analysts polled by First Call/Thomson Financial estimated earnings of $0.20 per share for the quarter.
Gross profit increased 98% to $5.8 million from $2.9 million last year, mainly due to higher selling prices for new jewelry designs and more favorable pricing environment in the precious metal market.
Quarterly revenues jumped 122% to $55.1 million from $24.8 million in the year-ago period, while analysts' consensus revenue estimate was $54.5 million.
For full year 2007, net income increased to $13.5 million or $0.86 per share from $5.8 million or $0.50 per share last year. Net sales for the year rose 57.5% to $145.6 million from $92.4 million in the previous year.
Looking ahead, for the first quarter, the Chinese company sees earnings in the range of $4.0 - $4.4 million or $0.19 - $0.21 per share, on wholesale revenues of approximately $62 million. Wall Street estimates earnings per share of $0.15 for the first quarter.
For full year 2008, the company expects net income in the range of $15.3 - $17.5 million or $0.70 - $0.80 per share, with wholesale revenues anticipated between $235 million and $250 million. The Street estimates earnings of $0.67 per share for the year.
Shares of FUQI are up more than 9% and currently trading at $8.00.
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