Xinyuan Real Estate Increases Sales but Misses Estimates on Earnings

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Xinyuan Real Estate (NYS: XIN) reported earnings on April 16. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Xinyuan Real Estate beat expectations on revenues and missed estimates on earnings per share.

Compared to the prior-year quarter, revenue expanded significantly and GAAP earnings per share expanded significantly.


Margins shrank across the board.

Revenue details
Xinyuan Real Estate chalked up revenue of $199.8 million. The one analyst polled by S&P Capital IQ looked for revenue of $181.0 million on the same basis. GAAP reported sales were 46% higher than the prior-year quarter's $137.2 million.

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Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
Non-GAAP EPS came in at $0.19. The one earnings estimate compiled by S&P Capital IQ anticipated $0.33 per share on the same basis. GAAP EPS of $0.38 for Q4 were 36% higher than the prior-year quarter's $0.28 per share.

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Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 28.2%, 200 basis points worse than the prior-year quarter. Operating margin was 22.4%, 110 basis points worse than the prior-year quarter. Net margin was 14.1%, 170 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $134.0 million. On the bottom line, the average EPS estimate is $0.25.

Next year's average estimate for revenue is $750.5 million. The average EPS estimate is $1.40.

Investor sentiment
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 668 members out of 696 rating the stock outperform, and 28 members rating it underperform. Among 141 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 132 give Xinyuan Real Estate a green thumbs-up, and nine give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Xinyuan Real Estate is outperform, with an average price target of $5.00.

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At the time this article was published Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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