Shengdatech, Inc. posts robust Q3
Shares of ShengdaTech, Inc. (Nasdaq: SDTH) are advancing in pre-market trading after the Chinese company reported third-quarter results above a sole analyst’s estimate.
For the three months ended Sept. 30, the manufacturer of nano precipitated calcium carbonate (NPCC) and coal-based chemical products recorded net income of $7.8 million, or $0.14 per share, above a sole analyst’s estimate of $0.11, as surveyed by Thomson Financial. Earnings were up 62.7% from $4.8 million, or $0.09 per share in the third quarter of 2006.
Net income for the third quarter includes a tax provision of $775,264 due to a tax holiday on income generated from the company’s original NPCC factory in Tai'an City, Shandong Province, ended on Dec. 31, 2006.
ShengdaTech booked revenues of $27.2 million, up 44.4% from $18.8 million in the third quarter of 2006. Revenues clocked in above the $25.33 million an analyst polled by Thomson Financial was forecasting. The small cap attributed the increase in its top-line to increased capacity of the company's NPCC production filling the continuing demand for its products.
In July 2007, ShengdaTech added two new NPCC production lines with a total of 40,000 metric tons of additional capacity.
Shares of ShengdaTech (SDTH) popped 8.67%, or $0.65, to $8.15 in pre-market trading. Shares of ShengdaTech have been trading in the range of $3.55 to $9.55 for the past 52 weeks.
