Why 51job's Shares Jumped

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of human resources company 51job (Nasdaq: JOBS  ) rose 20% today after releasing second-quarter earnings.

So what: Management said that revenue rose 8.4% to $56.7 million and income from operations increased 8.8% to $18.6 million, or $0.66 per share on an adjusted basis. Analysts only expected earnings per share of $0.57.

Now what: The company is still struggling with economic uncertainty in China, but the results were up nonetheless. Management said that third-quarter revenue would be between $55.9 million and $58.2 million and earnings per share would be $0.61-$0.66, both above analyst estimates. I'm still wary of China's economy so I'm not buying in today, but the results are encouraging for shareholders.

Interested in more info on 51job? Add it to your watchlist by clicking here.

Fool contributor Travis Hoium does not have a position in any company mentioned. You can follow Travis on Twitter at @FlushDrawFool, check out his personal stock holdings or follow his CAPS picks at TMFFlushDraw.

Motley Fool newsletter services have recommended buying shares of 51job. The Motley Fool has a disclosure policy. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. Try any of our Foolish newsletter services free for 30 days.


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