Sorl Auto Parts (SORL) Misses Q4 EPS by 4c, Revenues Beat; Offers FY19 Revenue Guidance Above Consensus

Sorl Auto Parts (NASDAQ: SORL) reported Q4 EPS of $0.17, $0.04 worse than the analyst estimate of $0.21. Revenue for the quarter came in at $123 million versus the consensus estimate of $104.95 million.

Fourth Quarter 2018 Financial Highlights

• Net sales for the 2018 fourth quarter were $123.2 million from $122.9 million in the 2017 fourth quarter;
• Revenues from the domestic OEM segment grew 14.1% year-over-year to $71.4 million;
• Revenues from international markets rose 20.0% to $22.2 million;
• Gross margin was 25.6%, up from 25.5% in the fourth quarter of 2017;
• Net income attributable to stockholders grew 15.0% to $3.3 million, or $0.17 per basic and diluted share, compared with $2.9 million, or $0.15 per basic and diluted share in the fourth quarter of 2017.

Mr. Xiaoping Zhang, SORL's Chief Executive Officer and Chairman, stated, “We are pleased to report robust growth in sales to Chinese OEM market in the fourth quarter and another record top line in 2018, especially in the weakening economy in China. While we grew sales and expanded our market shares in all our three lines of business in 2018, we remained profitable and generated strong free cash flow.”

Ms. Jinrui Yu, SORL’s Chief Operating Officer, added, “Our broad range of advanced braking products enabled us to expand our customer base and grow our market share in China and abroad. We also invested over $55.4 million in property, plant and equipment in 2018 to enhance our production capacity and productivity. Our strengthened research and development program continues to develop technologies positioning us for ongoing growth in the future.”

GUIDANCE:

Sorl Auto Parts sees FY2019 revenue of $515 million, versus the consensus of $470.96 million.

For earnings history and earnings-related data on Sorl Auto Parts (SORL) click here.

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