E-House China Holdings Ltd. (TLP) has beat in each of the last 4 quarters by an average of 46% and recently projected 100% Q3 sales growth from last year.
Company Description
E-House (China) Holdings Ltd., through its subsidiaries, provides real estate brokerage and consulting services in Shanghai in China. The company was founded in 2000 and has a market cap of $1.77 billion.
China continues to be a hot investment destination, fueled by the country’s explosive GDP growth in a challenging global economic environment. E-House has benefited nicely from this dynamic, posting huge share price gains and excellent revenue and earnings growth, on full display when the company reported better than expected second-quarter results on August 12.
Second-Quarter Results
Revenue was up 48% from last year to $63.5 million. Earnings also came in strong at 24 cents per share, 7 cents ahead of the Zacks Consensus Estimate.
During the earnings release the company noted that it had a strong cash position of $194 million.
Estimates Rising
With the nice quarter in hand, estimates have moved higher, with the current year advancing 30 cents to 92 cents per share. The next-year estimate is up 32 cents to $1.15, a bullish 26% growth projection.
Based on the current-year estimate, this stock trades with a P/E multiple of 23X, a premium to the overall market.
The Chart
Shares of EJ are up big over the last 6 months after bottoming out just above $6 in early March. Since then, shares have topped off above $24 and look well positioned to make another run at the all-time high. Take a look at the chart below.
