Global Cord Blood Corporation (CO) Tops Q2 EPS by 1c, Revenues Beat

Global Cord Blood Corporation (NYSE: CO) reported Q2 EPS of $0.14, $0.01 better than the analyst estimate of $0.13. Revenue for the quarter came in at $43.9 million versus the consensus estimate of $39.36 million.

Second Quarter of Fiscal 2020 Highlights

• Revenues increased by 26.9% year over year ("YoY") to RMB313.5 million ($43.9 million).
• New subscribers and accumulated subscriber base were 21,551 and 791,812[1], respectively.
• Gross profit increased by 32.7% YoY to RMB265.1 million ($37.1 million).
• Gross margin increased from 80.9% in the prior year period to 84.6%.
• Operating income increased by 37.9% YoY to RMB144.4 million ($20.2 million).
• Operating income before depreciation and amortization ("non-GAAP operating income[2]") increased by 32.8% YoY to RMB156.9 million ($22.0 million).
• Net income attributable to the Company's shareholders increased by 84.8% to RMB120.4 million ($16.8 million), as last year period recorded a significant decrease in fair value for equity securities ("mark-to-market loss") of RMB30.9 million compared to that of RMB7.0 million ($1.0 million) in the reporting quarter.
• Net cash provided by operating activities was RMB208.3 million ($29.1 million).

"Despite the prolonged cautious consumer sentiment in our markets fueled in part with slower economic growth in China, the US-China trade tensions, and our recent price adjustment, we managed to recruit 21,551 new subscribers in the second quarter, on track with our annual target." said Ms. Ting Zheng, Chairperson and Chief Executive Officer of GCBC. "With the Regulation of the People's Republic of China on the Administration of Human Genetic Resources coming into effect, we are evaluating its implications and other potential regulatory developments affecting our business. At the same time, we will continue to look for opportunities to broaden our revenue sources, and are prepared to adjust our strategy and market positioning to cope with any potential changes within the industry."

For earnings history and earnings-related data on Global Cord Blood Corporation (CO) click here.

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