SORL Auto Parts, Inc. (NASDAQ: SORL) is having an overwhelmingly strong start to the trading session this morning, and for good reason. The company released its financial results for the third quarter, blowing away expectations and causing excitement among investors. Below, we’ll talk about what we saw from earnings, how the stock reacted to the news, and what we’ll be watching for with regard to SORL.
SORL Reports Solid Earnings
As mentioned above, SORL Auto Parts is having an incredibly strong start to the trading session this morning after reporting strong financial results for the third quarter as well as the nine months ending on September 30, 2017. Here are the highlights from the earnings report:
- Net Sales – Net sales came in at $101.3 million in the third quarter. That’s an increase of 59% over the 63.7 million generated in Q3 2016.
- Gross Margins – Gross margins for the third quarter came in at 26.9%.
- Income – SORL also saw a massive increase in income from operations. In fact, the figure increased 215.7% year over year to $11.8 million.
- Net Income – The company also said that net income attributable to shareholders came in at $8.6 million. That’s a 165% year over year increase from $3.2 million; bringing earnings per share to $0.44.
- Guidance -Finally, 2017 guidance was increased. The company now expects net sales of approximately $370 million and net income of approximately $30.5 million.
In a statement, Mr. Xiaoping Zhang, Chairman and CEO at SORL, had the following to offer:
“We are excited to report that our sales growth in all three segments accelerated during the quarter. We continue to capture market share in the Chinese commercial vehicle braking market with our new advanced products and attractive pricing. Our OEM sales soared 70.6% compared with a 28.0% increase in overall commercial vehicle sales and a 31.8% sales growth in trucks. Our aftermarket sales in China grew at an even faster rate of 76.0% in the third quarter.
Demand for our innovative products has increased as we provide technologically advanced solutions to meet the evolving needs of our customers. Our stringent cost controls and production efficiencies have enhanced our profitability during the third quarter of 2017.”
How The Stock Reacted To The News
As we’ve come to expect, SORL Auto Parts is having an incredibly strong start to the trading session this morning, climbing on the positive earnings news. Of course, our partners at Trade Ideas were the first to alert us to the gains. At the moment (8:55), SORL is trading at $8.55 per share after a gain of $2.56 per share or 42.74% thus far today.
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What We’ll Be Watching For Ahead
Moving forward, the CNA Finance team will continue to keep a close eye on SORL. In particular, we’re interested in following the ongoing sales growth and continued innovation. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!
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