Nano precipitated calcium carbonate maker, ShengdaTech, Inc. (SDTH), Thursday said its fourth-quarter earnings increased from the same quarter a year ago, helped by an increase in gross margin, an increase in revenues and a one-time gain related to the extinguishments of the company's convertible senior notes.
ShengdaTech's net income for the fourth quarter increased 62.8% to 12.663 million from $7.779 million in the same quarter a year ago. Earning per share for the fourth quarter, however, decreased to $0.11 per share from $0.15 per share in the same quarter last year, due to a higher share count.
The company said Pro forma net income for the fourth quarter, excluding the gain related to the repurchase of its convertible senior notes, increased 12.3% year-over-year to $8.7 million, or $0.13 per share.
On average, four analysts polled by Thomson Reuters expected fourth quarter earnings of $0.12 per share. Analysts' estimate typically exclude special items such as one-time charges or gains.
Gross margin for the quarter increased to 43.0% from 35.8% for the same quarter last year. Pro forma net margin for the fourth quarter was 27.5%.
The company recoded a gain of $9.018 million related to the extinguishments of long-term convertible notes, absent such a gain in the same quarter a year ago.
Operating income for the fourth quarter, however, decreased to $8.423 million from $8.435 million in the fourth quarter of last year, primarily hurt by an increase in total operating expenses. Total operating expenses for the fourth quarter increased to $5.250 million from $1.823 million in the corresponding quarter last year.
EBITDA for the fourth quarter improved 104.6% year-over-year to $18.5 million from $9.1 million in the fourth quarter of last year.
Net sales for the fourth quarter increased to $31.775 million from $28.623 million in the same quarter a year ago, helped by an increase in average selling prices and increased demand for NPCC products. NPCC products revenue for the fourth quarter surged 76.7% to $24.4 million from $13.8 million in the year-ago quarter.
Street analysts estimated net revenues of $29.38 million for the fourth quarter.
For the full year, net income increased to $40.035 million or $0.60 per share from $27.030 million or $0.50 per share last year. Earnings per share for the full year were in line with analysts' estimate.
Pro forma net income for the full year increased 34.8% to $36.4 million and pro forma earnings per share for the full year increased to $0.64 from $0.50 last year.
Revenues for the full year increased to $149.427 million from $100.654 million a year ago, analysts expected revenues of $147.02 million for the year.
ShengdaTech said it expects 2009 revenue and net income from NPCC to be in the range of $92 million to $94 million and $18 million to $19 million, respectively, with earnings per share of $0.32 - $0.34.
SDTH is currently trading at $3.42, up $0.25 or 7.92% on a volume of 277k shares on the Nasdaq.
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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.