SinoHub’s fourth quarter profit nearly doubles
SinoHub (AMEX:SIHI), a Chinese cellphone and electronics parts manufacturer, reported Monday its fourth quarter profit nearly doubled, spurred by strong revenue growth.
For the fourth quarter ended December 31, the company earned $7.2 million, or 25 cents per diluted share, up 95% from $3.7 million, or 13 cents per diluted share, for the year-ago period. Revenues rose 37% year-over-year to $58.5 million.
Analysts polled by Thomson Reuters predicted the company would earn 17 cents a share on revenues of $55.8 million.
Revenues from the electronic components division declined 16% to $36 million while the new cellphone manufacturing division had revenues of $22.5 million.
For the entire 2010, the company had a profit of $19 million, or 67 cents per diluted share, up from $12 million, or 48 cents per diluted share, for 2009. Revenues were $135 million, up from $128 million.
The company also expanded its phone manufacturing capacity during the year. SinoHub can now produce about 3.6 million handsets annually. In 2010, the company produced about 1 million handsets.
Looking forward, the company expects 2011 revenues to come in at $255 million, above analyst estimates of roughly $245 million. The company also sees more improvements from the cellphone manufacturing division as it increases the production of smartphones, which enjoys higher margins.
Since the announcement, SinoHub's shares rose 5.6% to trade at $2.85 as of 2:13 pm EST.
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