Why E-House (China) Holdings Limited Shares Popped
Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of Chinese real estate service company E-House (China) Holdings Limited jumped as much as 15% today after the company released earnings.
So what: Third-quarter revenues were up 43% to $195.7 million, and non-GAAP net income increased 79% to $36.9 million, or $0.20 per share. This well exceeded analysts' expectations of $172.2 million in revenue and earnings of $0.14 per share.
Now what: Management cited growth in the company's e-commerce business, which includes real estate auctions. They are also seeing positive trends in the Chinese economy and real estate market, although who knows how long that will last. I'm still concerned about Chinese real estate, overall, and just won't take the risk on this stock despite the earnings beat today.
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The article Why E-House (China) Holdings Limited Shares Popped originally appeared on Fool.com.Fool contributor Travis Hoium has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. 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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