China Kanghui Holdings
The 10-second takeaway
For the quarter ended March 31 (Q1), China Kanghui Holdings beat expectations on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue grew significantly and GAAP earnings per share increased significantly.
Gross margins shrank, operating margins dropped, net margins grew.
Revenue details
China Kanghui Holdings reported revenue of $13.1 million. The four analysts polled by S&P Capital IQ wanted to see sales of $12.7 million on the same basis. GAAP reported sales were 26% higher than the prior-year quarter's $10.4 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS details
EPS came in at $0.18. The four earnings estimates compiled by S&P Capital IQ predicted $0.19 per share. GAAP EPS of $0.18 for Q1 were 29% higher than the prior-year quarter's $0.14 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
Margin details
For the quarter, gross margin was 70.8%, 90 basis points worse than the prior-year quarter. Operating margin was 38.1%, 570 basis points worse than the prior-year quarter. Net margin was 35.9%, 360 basis points better than the prior-year quarter.
Looking ahead
Next quarter's average estimate for revenue is $15.5 million. On the bottom line, the average EPS estimate is $0.22.
Next year's average estimate for revenue is $62.9 million. The average EPS estimate is $0.91.
Investor sentiment
The stock has a one-star rating (out of five) at Motley Fool CAPS, with 23 members out of 34 rating the stock outperform, and 11 members rating it underperform. Among 11 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), six give China Kanghui Holdings a green thumbs-up, and five give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on China Kanghui Holdings is outperform, with an average price target of $23.64.
Over the decades, small-cap stocks, like China Kanghui Holdings have provided market-beating returns, provided they're value priced and have solid businesses. Read about a pair of companies with a lock on their markets in "Too Small to Fail: Two Small Caps the Government Won't Let Go Broke." Click here for instant access to this free report.
- Add China Kanghui Holdings to My Watchlist.