China Automotive Systems Tops Q2 Revenue Estimates, Electric Power Steering Sales Drive Growth
Portfolio Pulse from Lekha Gupta
China Automotive Systems, Inc. (NASDAQ: CAAS) reported Q2 FY24 EPS of $0.24, down from $0.35 a year ago. Net sales increased 15.4% Y/Y to $158.6 million, beating the consensus of $137.41 million. Electric Power Steering (EPS) product sales surged 33.7% to $55.6 million. Gross profit rose 29.0% Y/Y to $29.3 million, with margin improving to 18.5% from 16.5%. Income from operations grew 38.7% Y/Y to $10.8 million. The company reiterated revenue guidance for FY24 of $605.0 million. CAAS shares are up 3.17% premarket.
August 13, 2024 | 1:25 pm
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POSITIVE IMPACT
China Automotive Systems (CAAS) reported strong Q2 FY24 results with net sales up 15.4% Y/Y, driven by a 33.7% surge in Electric Power Steering product sales. Gross profit and income from operations also saw significant growth. The company reiterated its FY24 revenue guidance of $605 million. Shares are up 3.17% premarket.
The strong Q2 results, particularly the significant growth in Electric Power Steering product sales and improved margins, are positive indicators for CAAS. The reiteration of FY24 revenue guidance and the premarket share price increase further support a positive short-term impact.
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