Second Quarter Earnings Previews, Part 1
posted by The Traveller on Tuesday, August 03, 2010

Fushi Copperweld (FSIN) is currently trading at $8.89, down 12.16% for the year and down 31.30% from its April 9 high at $12.04. The Trading China Tracker Score is 10 (Buy).

FSIN is set to report second quarter earnings on Wednesday, August 4, before the market opens. The company said it expects adjusted fully diluted earnings per share to be between $0.32 and $0.34 for the second quarter, consensus estimate is $0.33. The Company expects profitability in subsequent quarters to improve due to higher seasonal revenue levels, continued increases in capacity utilization at the Fayetteville facility as a result of improving end market demand, and continued incentives from China's ongoing infrastructure buildout. In late June, Global Hunter started FSIN with a BUY rating and set a price target of $15 based on 12x FY 2010 earnings. The stock lost 2.95% in the past five sessions.

China Information Security Technology (CPBY) is currently trading at $5.89, down 4.39% for the year and down 20.84% from its April 6 high at $7.44. The Trading China Tracker Score is 2 (Hold).

CPBY has scheduled its second quarter earnings report for the morning of Thursday, August 5. In May the company raised its full year guidance to projected revenue of $141-146 million and adjusted net income of $35.5-39.5 million. Mid-July CPBY announced that during the second quarter of 2010, new contracts valued at $39.26 million were signed, an increase of 49% compared to the same period in 2009. Analysts expect the company to report EPS $0.18 for the quarter on revenues of $33.84 million. CPBY is currently followed by 2 analysts. Both give the stock a positive rating. The average price target is 10.50, which implies 78.26% upside from current price. The Trading China Score is currently only at Hold due to the huge cash outflow in the past two quarters.

China Integrated Energy (CBEH) is currently trading at $8.84, up 25.56% for the year and down 28.19% from its April 15 high at $12.31. The Trading China Tracker Score is 6 (Hold).

CBEH will also report Q2 numbers on Thursday before the market opens. In May the company raised its full year guidance to revenues of $387 million and net income of $49.5 million. CBEH is currently constructing a new biodiesel facility which is expected to come online in the fourth quarter and contribute $9 million in net income for FY 2011. Consensus estimates for the second quarter call for EPS of $0.27 on $91.7 million revenues. CBEH is currently followed by 4 analysts. All 4 give the stock a positive rating. The average price target is 11.83, which implies 33.86% upside from current price.

General Steel Holdings (GSI) is currently trading at $3.11, down 29.48% for the year and down 28.19% from its March 8 high at $4.81. The Trading China Tracker Score is -8 (Strong Sell).

GSI is scheduled to report second quarter numbers on Friday, August 6, before the open. The troubled steel producer said that "by the end of March, the market began to improve as average selling prices increased at a rapid rate and we were able to pass our costs onto our customers and achieve a positive gross margin." However, on July 21, Rodman & Renshaw reduced Q2/10 estimates from net income of $7.5 million to a net loss of $6.4 million. The analyst has a $4 target on the stock. Consensus estimates for the second quarter currently call for a loss of $0.06 per share on revenues of $491.15 million.

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