- SORL beat expectations for revenue and earnings for Q2 2014.
- This reinforces my positive stance on the company.
- I pointed out in my last article that the stock is likely to meet/exceed expectations going forward.
SORL Auto Parts (NASDAQ:SORL) reported an excellent quarter for Q2 2014. SORL exceeded its revenue expectations by $5.3 million and exceeded its earnings per share estimates by $0.04. Revenue for the second quarter increased 14.3% to $65.7 million. Net income attributable to stockholders was $4.1 million, or $0.21 per share. Sales for the first six months of 2014 increased 17.1% to $115.7 million, while net income increased 30% to $6.9 million.
SORL achieved sales increases in both of its market segments in Q2. The largest segment, commercial vehicle brakes, comprised 82% of total sales and increased 14.9% to $53.9 million. Passenger vehicle brake sales increased 11.3% to $11.8 million. Demand for the company's products were strong as they are considered high-quality and low-priced.
The company's strong performance reinforces my positive outlook for the company as I explained in detail in my last article on SORL. I concluded in that article that SORL was likely to meet/exceed its earnings expectations going forward due to its multiple strategies. The stock should perform well going forward as it has a recipe for success of being significantly undervalued with strong expected earnings growth for 2014.
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