China Automotive’s shares climb 36% as Q4 revenue tops estimates
Shares of China Automotive Systems (NASDAQ:CAAS), which supplies auto power steering systems, soared 36% on Friday as the company's fourth quarter sales beat analyst estimates by a wide margin.
For the quarter ending December 31, the China-based company's revenues grew 20% to $100.5 million, exceeding analyst estimates of roughly $90 million.
Meanwhile, income from operations more than doubled to $12.3 million, helped by the strong revenue growth as well as lower operating expenses.
Gross margin, however, fell to 19.7% from 21.8%. The company said margin in the fourth quarter is typically lower because of higher warranty expenses.
For the entire 2010, the company's sales rose 35.3% to $345.9 million, while income from operations grew 58.1% to $54.0 million. The company said it expects revenues to grow 20% in 2011.
China Automotive's shares surged $2.95 to trade at $11.09 as of 12:34 pm EST.
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