China Finance Online rises on Q4 profit
Shares of China Finance Online Co. Ltd. (Nasdaq: JRJC) rose today on news that the provider of online financial services posted a fourth-quarter profit above analysts’ expectations.
The Beijing-based company reported before the start of trading that earnings for the three months ended Dec. 31, 2007, were $0.16 per share, above the $0.09 per share projected by three analysts polled by Thomson Financial.
Net revenues soared 252% to $8.88 million from $2.52 million in the fourth quarter of 2006.
“The company’s subscription-based revenues continue to register robust growth,” Anindya Chatterjee, an analyst with investment bank Jefferies & Co., in a research note released today.
For the full year 2007, China Finance saw its net revenues rise 263% to $25.90 million from $7.13 million in 2006. Net income per ADS was $0.45 per share.
Looking ahead, the company forecasted that 2008 revenues will be between $50 million and $60 million.
“This is a signal that revenue in 2008 is going to be strong,” Chatterjee said in a phone interview.
Regarding the stock’s movement during today’s session, the analyst attributed the increase to short covering.
At close, shares of China Finance Online Co. Ltd. (JRJC) had added $4.21, or 25%, to $21.22. The 52-week high of $47.68 was reached on Oct. 3, 2007, while the 52-week low of $5.80 was established on March 13, 2007.
