China Jo-Jo Drugstores’ shares fall as third quarter results miss estimates
China Jo-Jo Drugstores’(NASDAQ:CJJD) shares fell 10% after the company’s third quarter results fell short of analyst estimates.
The Chinese retail pharmacy chain reported a third quarter net
income of $2.2 million, or 17 cents a share. That is down from $2.6
million, or 26 cents a share, for the year-ago period. The decline was
mainly due to higher expenses associated with the new store openings and
higher branding-related expenses.
Meanwhile, revenues increased 20.9% to $18.0 million from $14.9
million, boosted by the company’s decision to start selling in its
stores. However, comparable store revenues, revenues from stores opened
for at least 15 months, dropped 6.6% on lower sales of medical devices
and traditional Chinese medicine.
The results fell short of the 19 cents a share profit and $19.9 million of revenues expected by analysts.
At quarter end, the company had current assets of $37.7 million,
$6.8 million of which is in cash, and $9.8 million in total
liabilities.
During the quarter, the company opened 3 new stores, bringing the total to 49 stores.
China Jo-Jo’s CEO, Lei Liu, said the company expects to have 60
stores in operation by the end of March. As well, the company expects
to open between 20 to 30 new locations in fiscal 2012.
For fiscal 2011, the company expects revenues between $68 million
and $70 million. Basic and diluted earnings per share are both expected
to be in the 62 cents to 64 cents range.
As of 2:50 pm EST, the company’s shares are trading at $3.98, down 45 cents from yesterday’s close of $4.43.
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