What happened
Shares of Chinese online recruiter 51job, Inc. (ADR) (JOBS) were surging today after the company posted strong second-quarter results. As of 10:53 a.m. EDT, the stock was up 8.3%.
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So what
It was a strong quarter for the human-resources specialist across the board, as 51job said revenue increased 20.3%, to $99.3 million, which beat expectations at $94.2 million. Gross margin ticked up 140 basis points, to 73.2%, and operating income jumped 46.8%, to $27.7 million. Adjusted earnings per share improved from $0.43 a year ago to $0.49, topping the consensus at $0.46.
CEO Rick Yan called the results "solid" and touted "robust acquisition of new users."
Now what
Looking ahead, the company said it expected revenue of $101 million-$104 million in the current quarter, better than analyst estimates at $98.6 million. On the bottom line, it projected $0.46-$0.49 in earnings per share, which was also above expectations at $0.44.
After a quarter like that, it's easy to see why the stock is climbing today. As the Chinese economy and labor market continue to explode, 51job is likely to gain with it.
