China Yuchai International Limited Crushes Earnings Estimates

Seth Jayson, The Motley Fool
Updated

China Yuchai International Limited (NYS: CYD) reported earnings on Feb. 27. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Dec. 31 (Q4), China Yuchai International Limited beat expectations on revenues and crushed expectations on earnings per share.

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

Margins contracted across the board.

Revenue details
China Yuchai International Limited booked revenue of $594.4 million. The one analyst polled by S&P Capital IQ predicted a top line of $563.6 million on the same basis. GAAP reported sales were 2.4% lower than the prior-year quarter's $609.2 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 $1.19. The one earnings estimate compiled by S&P Capital IQ forecast $0.70 per share on the same basis. GAAP EPS of $1.46 for Q4 were 22% lower than the prior-year quarter's $1.88 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 27.7%, 540 basis points worse than the prior-year quarter. Operating margin was 17.0%, 330 basis points worse than the prior-year quarter. Net margin was 9.1%, 240 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $555.6 million. On the bottom line, the average EPS estimate is $0.54.

Next year's average estimate for revenue is $2.42 billion. The average EPS estimate is $2.55.

Investor sentiment
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 350 members out of 386 rating the stock outperform, and 36 members rating it underperform. Among 63 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 59 give China Yuchai International Limited a green thumbs-up, and four give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on China Yuchai International Limited is hold, with an average price target of $15.00.

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At the time thisarticle 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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