China Automotive Systems Inc. Fourth Quarter Earnings Sneak Peek

China Automotive Systems, Inc. (NASDAQ:CAAS) will unveil its latest earnings on Friday, March 9, 2012. China Automotive Systems is a holding company that, through joint ventures in China and a wholly-owned subsidiary, manufactures power steering systems and other component parts for automobiles.

China Automotive Systems, Inc. Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average estimate of analysts is for profit of 16 cents per share, a decline of 27.3% from the company’s actual earnings for the same quarter a year ago. The average estimate is the same as three months ago. Between one and three months ago, the average estimate was unchanged. It also has not changed during the last month. Analysts are projecting profit to rise by 42.7% versus last year to 63 cents.

Past Earnings Performance: The company is looking to break the streak of missing estimates in the past two quarters. Last quarter, it fell short of analyst expectations by reporting net income of 10 cents per share against an estimate of profit of 15 cents per share. The quarter before that, it missed forecasts by 10 cents.

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Wall St. Revenue Expectations: Analysts predict a decline of 4.2% in revenue from the year-earlier quarter to $96.2 million.

Analyst Ratings: The limited number of analysts covering the stock seem relatively indifferent about China Automotive Systems with two of three analysts surveyed maintaining a hold rating.

A Look Back: In the third quarter, profit rose 23.4% to $10.1 million (10 cents a share) from $8.2 million (26 cents a share) the year earlier, but fell short analyst expectations. Revenue fell 1.4% to $75 million from $76.1 million.

Key Stats:

The increase in profit in the third quarter came after net income fell in the previous quarter. In the second quarter, net income fell 49.1%.

Revenue has dropped in the last two quarters. In the second quarter, the figure fell 3%.

Stock Price Performance: Between December 7, 2011 and March 6, 2012, the stock price rose $1.30 (30.4%), from $4.27 to $5.57. The stock price saw one of its best stretches over the last year between February 17, 2012 and February 28, 2012, when shares rose for seven straight days, increasing 28.7% (+$1.44) over that span. It saw one of its worst periods between May 9, 2011 and May 18, 2011 when shares fell for eight straight days, dropping 13.8% (-$1.25) over that span.

(Company fundamentals by Xignite Financials. Earnings estimates provided by Zacks)

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To contact the reporter on this story: Derek Hoffman at staff.writers@wallstcheatsheet.com

To contact the editor responsible for this story: Damien Hoffman at editors@wallstcheatsheet.com