What: Shares of Chinese human resource services specialist 51job (JOBS) have jumped today, up by 15% as of 11:44 a.m. ET, after the company reported fourth-quarter earnings.
So what: Revenue in the quarter increased 16% to $94.3 million, topping the company's own guidance. Gross margin also expanded to 71.6%, and operating income came in at $28.9 million. Earnings per share were $0.38, or $0.52 on an adjusted basis.
Now what: CEO Rick Yan said the recent push for salespeople to prioritize up-selling higher-value offerings is starting to pay off. Salespeople are also improving cross-selling other HR services to customers, which is improving overall customer engagement. Average revenue per customer and overall revenues per salesperson are trending higher as evidence. Guidance for the first quarter calls for revenue of $78 million to $81 million, with adjusted earnings per share in the range of $0.36 to $0.39.