E-House (China) Holdings Limited
) jumped 11.38% and closed at $11.16 in yesterday's regular
trading session on the NYSE following the disclosure of its
robust third-quarter 2013 results.
This Chinese real estate company - E-House - reported net income
attributable to its shareholders of 14 cents per ADS, well ahead
of the Zacks Consensus Estimate of 8 cents. The company had
experienced a net loss attributable to its shareholders of 18
cents per ADS in the comparable prior-year period.
E-House's solid performance is backed by substantial revenue
growth that climbed 43% year over year to $195.7 million in the
quarter under review and surpassed the Zacks Consensus Estimate
of $173 million.
An 85% year-over-year surge in revenues in its real estate online
services, chiefly driven by growth in e-commerce revenues,
contributed to this upside. Also, revenues from real estate
information and consulting services escalated 47% year over year.
These factors collectively helped compensate for slower growth in
revenues from primary real estate agency services (it moved up
10% year-over-year). The company exited the quarter with cash and
cash equivalents of $216 million.
Further, E-House has raised its already hiked fiscal 2013 total
revenue guidance. It now guides revenue of approximately $700, up
from $630 million expected earlier. This also reflects a 51%
elevation from $462.4 million in 2012.
Notably, E-House has been making concerted efforts for some time
to develop its real estate e-commerce business and is now
enjoying the benefits. The company, which had initiated the
concept of real estate e-commerce in 2011, launched its
e-commerce 3.0 open transaction platform in June this year.
E-House has now opted for strategic cooperation with CITIC Bank
Corporation Limited for the e-commerce 4.0 platform, for
combining the real estate e-commerce with financial services
featuring the "Leju Loan" through CITIC Bank. This move is aimed
at enhancing the purchasing power of homebuyers and drive sales
E-House currently carries a Zacks Rank #1(Strong Buy). One can
also look at other stocks in the same industry like
Kennedy-Wilson Holdings, Inc.
). While FirstService and Kennedy-Wilson carry a Zacks Rank #1,
HFF has a Zacks Rank #2(Buy).
E-HOUSE CHINA (EJ): Free Stock Analysis
FIRSTSERVICE CP (FSRV): Free Stock Analysis
HFF INC-A (HF): Free Stock Analysis Report
KENNEDY-WILSON (KW): Free Stock Analysis
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