China Intelligent Lighting (NASDAQ:CIL), the only China LED stock on a major US exchange, reported solid results Tuesday morning but missed a bit on the EPS side. The company posted an EPS of .17/share vs the analyst estimate of .20 on revenues of $20.25 million vs the analyst estimate of $18.6 million.
Ms. Li Xuemei, Chairman and Chief Executive Officer of China Intelligent, said,
“Our third quarter results demonstrate progress on our strategy to expand the reach of our OEM and branded lighting product lines. We signed relationships with 10 new distributors during the quarter, and saw our marketing efforts, which leverage our status as a public, NYSE Amex-listed company, result in a steady increase in demand for our Hyundai and CINLE branded products. Our household lighting products also showed strength in the quarter, and we increased the volume and broadened the domestic geographic reach of household lighting product sales. Bolstered by the proceeds from our June 2010 public offering, we have increased our research and development investments, primarily focused on LED technology as it relates to industrial design. Through these investments, we intend to steadily expand our portfolio of lighting products. We are also making strides in our efforts to enhance our production capabilities, increasing the efficiency of production while also implementing procedures that assure product quality. As the lighting industry in China continues its rapid pace of growth, we expect to continue to benefit from increasing urbanization and demand for energy-efficient products.”
Looking ahead, the company expects to report revenues in the range of $22 – $24 million next quarter, which is above the analyst estimate of $20 million. They see EPS in the range of $2.2 – $2.4 million, about in line with what they reported this quarter.
I really expected more significant growth for this China LED play. I don’t think there is any doubt that this is a very intriguing company with lots of growth potential, but I expected a bit more from this company this quarter. The stock is down about 10% in early trading, but technically staged a big breakout move Nov 4th and briefly traded at a new high on Monday. This earnings report probably stalls that breakout move for a bit, but I’m still optimistic and continue to hold a position.
Disclosure: Author holds a position in CIL.