Huami Corporation (HMI) Reports Q3 EPS of $0.31, Revenues Beat

November 26, 2018 5:50 AM EST

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Huami Corporation (NYSE: HMI) reported Q3 EPS of $0.31. Revenue for the quarter came in at $156.5 million versus the consensus estimate of $125.2 million.

  • Revenues[1] reached RMB1,074.7 million (US$156.5 million), representing an increase of 126.7% from the third quarter of 2017.
  • Gross margin was 26.7%, no material change from the third quarter of 2017.
  • Net income attributable to Huami Corporation was RMB113.8 million (US$16.6 million), compared with RMB50.2 million for the third quarter of 2017.
  • Adjusted net income attributable to Huami Corporation[2] was RMB134.2 million (US$19.5 million), up 93.1% from the third quarter of 2017.
  • Adjusted basic and diluted net income per American depositary share (\"ADS\") attributable to ordinary shareholders of Huami Corporation was RMB2.23 (US$0.32) and RMB2.11 (US$0.31), respectively, compared with RMB1.27 and RMB1.22, respectively, for the third quarter of 2017. Each ADS represents four (4) Class A ordinary shares.
  • Total units shipped reached 8.2 million, compared with 3.9 million in the third quarter of 2017.

"Our third quarter results reflect our strong and growing market position and the enthusiastic reception of our products across the global smart wearables market," said Wang Huang, Chairman and CEO. "We were particularly pleased with the revenue growth we experienced in overseas markets, especially strong sales in the emerging markets as we executed focused sales strategies in these markets. We continue to develop cutting-edge products whose features excite and benefit consumers. During the quarter we launched a new generation Amazfit Health Band 1S, which allows us to provide cloud-based health monitoring services to users, future empowered by our newly developed Huangshan-1 AI Chip. We also introduced a new smartwatch, Amazfit Verge, that fully integrates with the Xiaomi IOT system via Xiao\'ai intelligent voice assistant and we will further explore wearable technology scenarios in IOT industries. Meanwhile, the new Xiaomi-branded product Mi Band 3 along with its NFC version (with access to public transportation in 160+ cities), is experiencing a strong sales momentum, which also drove our growth of this quarter. The newly launched products and technologies create a foundation for our continued leadership in the development of advanced products in the smart wearables industry. We are excited to continue our growth and strengthen our market position through robust research and product development, including expansion of our value-added services, and the continued exploration of new markets and partners around the globe."

David Cui, Chief Financial Officer, said, "Strong year-over-year revenue growth of 126.7% supported continued improvement in our profit as we enjoy the benefits of our growing scale. Revenue generated from self-branded products grew to 34.5% of the total revenuefor the first nine month sales and international version sales contributed 42.7% of the total shipment for the third quarter. We shipped 8.2 million units in the quarter, up 110.3% from the third quarter of 2017, driven by strong market reception for our Amazfit products and continued strong sales of the Mi Band 3 that was launched in the second quarter of 2018. Our growing share of the global smart wearables market, combined with strong alliances with industry leaders and solid momentum on many fronts, gives us confidence in our outlook for the fourth quarter and positions us well as we head into 2019."

For earnings history and earnings-related data on Huami Corporation (HMI) click here.

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