Fantastic News - Guidance!First we had a great Q3 in terms of both revenue and earnings, now we see great guidance for Q4. I had no idea the company could do this well in this transition phase to a new business model.
I had something in the order of $6M as possible net income for Q4, but this guidance of $11M is a home run, IMHO. Wow! Expect to see the price react tomorrow.
If this were a normal market, I would expect another spike, not unlike the one we saw in December of last year...
Regardless, here's an excerpt from the NR FYI:
China Organic Agriculture, Inc. (OTCBB: CNOA), an international diversified premium food products company capitalizing on China's burgeoning domestic consumer demand, today announced revenue and earnings guidance for fourth quarter 2008 and Fiscal Year 2008, ending December 31, 2008, with estimates exceeding all previous revenue and net income results for the Company.
Projected Guidance for Q4 and FY08:
- Q408 revenue of $54 million (vs. $15.7 million Q407), or an approximate 240% Quarter Over Quarter Revenue Increase
- FY08 revenue $113 million (vs. $44.5 million FY07), or an approximate 150% Year Over Year Revenue Increase
- Q408 net income $11 million (vs. $3.9 million Q407), or an approximate 180% Quarter Over Quarter Net Income Increase
- FY08 net income $20 million (vs. $13.5 million FY07), or an approximate 40% Year Over Year Net Income Increase
- Q408 EPS of $0.15 and FY08 EPS of $0.29
"We remain unequivocal in our commitment to revenue and earnings growth,†said Jinsong Li, Chief Executive Officer of China Organic Agriculture. “Our successful restructuring and the implementation of a number of high growth strategies are validated by our current and forecasted top line and bottom line numbers. We believe our proactive business model will serve to drive revenues, earnings and, ultimately, shareholder value.â€
Management noted the Company’s results and forecasts reflect the recent sale of the Company’s ErMaPao subsidiary for $8.7 million and the acquisition of Dalian Huiming in October 2008.
CNOA recently announced aggressive growth strategies for 2009 which include further diversification of product lines, the development of new revenue streams and the completion of a number of strategic acquisitions. The Company is committed to establishing itself as a leading purveyor of premium international consumer products including high-quality foods, organic rice and California wines. It is uniquely positioned to capitalize on rapidly-growing Chinese and Asian domestic consumer demand which is anticipated to continue to increase despite the current economic slowdown worldwide.