SORL Auto Parts Inc. (NASDAQ: SORL) reported its fourth-quarter financial results before the markets opened on Monday. The company said that it had $0.15 in earnings per share (EPS) on $123.0 million in revenue, which compares with consensus estimates of $0.47 in EPS on revenue of $103.59 million. The same period of last year reportedly had EPS of $0.43 and $85.8 million in revenue.
During the quarter, revenues from domestic OEM customers were $38.3 million, an increase of 73.3% from $22.1 million in the fourth quarter of 2016. The strong year-over-year sales growth to the OEM market was mainly due to increased sales of new trucks, especially heavy-duty trucks.
At the same time, sales to China’s domestic aftermarket increased 29.6% to $66.1 million, compared with $51.0 million in the same quarter of 2016. The increased sales in aftermarket segment were mainly attributable to the robust sales of new vehicles in the recent quarters, generating higher expiration of OEM warranties. Revenues from international markets increased 46.5% to $18.6 million, compared to $12.7 million in the same quarter of 2016 as the global customer base continued to expand.
Looking ahead to the 2018 full year, the company expects to see net sales of roughly $450 million and net income attributable to stockholders of approximately $28 million. The consensus estimates call for $1.67 in EPS on $393.86 million in revenue for the coming full year.
Mr. Xiaoping Zhang, SORL’s chief executive and board chair, commented:
We are pleased to close out 2017 with another quarter of top line growth, making it two consecutive years of record setting annual sales. All three lines of our businesses registered strong growth in the fourth quarter. As the Chinese economy regained growth momentum in 2017, increased infrastructure and residential property development together with the positive effects of supply-side reform and heightened policies of emission control, propelled strong demand for new trucks.
Shares of SORL traded early Monday at $5.30, down more than 18% on the day, with a consensus analyst price target of $10.00 and a 52-week range of $3.59 to $9.74.