KongZhong CP ADS (KONG) gave its share price a nice little boost on August 10 after reporting strong Q2 results that were better than expected.
Second-Quarter Results
Sales were up 37% from last year to $32.3 million. Earnings came in at 10 cents per share, 3 cents ahead of the Zacks Consensus Estimate.
During the earnings release the company noted that its gross margin expanded to 51% from 49%. KongZhong also made noted of its strong balance sheet, with $132 million.
Estimates Jump
Estimates moved higher after word of the good quarter hit the street. The current year added 7 cents and advanced to 35 cents per share. The next-year estimate is up 10 cents in the same period to 45 cents, a bullish 30% growth projection.
With enthusiasm building, this stock does not come cheap, trading at 34X projected current-year earnings, a steep premium to the overall market.
The Chart
Shares of KONG are up huge over the last 5 months, climbing from just above $4 in early March to a recent high just short of $14. Take a look below.
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