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.
Disclosure: The author has no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. The author wrote this article themselves, and it expresses their own opinions. The author is not receiving compensation for it (other than from Seeking Alpha). The author has no business relationship with any company whose stock is mentioned in this article.
Editor's Note: This article covers one or more stocks trading at less than $1 per share and/or with less than a $100 million market cap. Please be aware of the risks associated with these stocks.