SORL Auto Parts Inc. (NASDAQ: SORL) released its fiscal fourth-quarter financial results before the markets opened on Monday. The auto parts firm said that it had $0.17 in earnings per share (EPS) and $123.2 million in revenue, which compares with consensus estimates of $0.21 in EPS and $104.95 million in revenue. The same period of last year reportedly had EPS of $0.15 on revenue of $122.93 million.
During the most recent quarter, revenues from domestic OEM (original equipment manufacturer) customers were $71.4 million, an increase of 14.1% from $62.6 million in the fourth quarter of 2017. The strong year-over-year sales growth was mainly due to increased market share. Sales to China’s domestic aftermarket were $29.7 million, down $41.8 million last year. The decrease in aftermarket sales was attributable mainly to the limited production capability, which was largely consumed by the increased orders from the OEM market and international markets.
Separately, revenues from international markets increased by 20.0% to $22.2 million, compared to $18.5 million, as the global customer base continued to expand.
Looking ahead to the fiscal 2019 full year, the company expects to see net sales of $515 million and net income attributable to stockholders of roughly $22 million. Consensus estimates call for $1.13 in EPS and $470.96 million in revenue for the year.
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Xiaoping Zhang, SORL’s chief executive and board chair, commented:
We are pleased to report robust growth in sales to Chinese OEM market in the fourth quarter and another record top line in 2018, especially in the weakening economy in China. While we grew sales and expanded our market shares in all our three lines of business in 2018, we remained profitable and generated strong free cash flow.
The stock traded up 10.1% early Monday to $3.17, in a 52-week range of $1.77 to $6.88. The consensus price target is $10.00.
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