June 10, 2010 (Chinavestor) Shares of micro power grid and distributed power generation systems provider A-Power Energy Generation Systems, Ltd. (NASDAQ:APWR) jumped 20% in the first hour of trading on Thursday. Better-than-expected earnings and an improved guidance are behind superb performance.
Source: Reuters.com
The good news was that the company swung back to profit from last quarter, reporting net income of $29.3 million or $.64 per share. Analysts were looking for earnings of $.22 per share.
The big jump in stock price is attributed to a significantly raised revenue guidance for FY2010. The company said now it expects revenues of $500 million FY 2010 vs. previous estimates of $386.7 million.
Another factor to consider is the historical stock price of A-Power Energy Generation Systems, Ltd. (NASDAQ:APWR) compared to revenue and earnings growth. Thanks to the $29. 3 million or $.64/ADR profit, the big jump in profitability is not in sync with the share price of the company. Current 20% jump is substantial but I wouldn't be surprised of more in the upcoming weeks.
More earnings this week: China-Biotics Inc. (NASDAQ:CHBT) will report before the open on Friday, June 11, 2010. China stock earnings calendar, June 7-11, 2010.
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