Yuhe International Sales And Profits Soar (YUII)

Yuhe International, Inc. YUII on Monday morning released financial results that beat Wall Street expectations. Yuhe International, Inc reported that its 3rd quarter net income climbed 75.7% to $7.3 million, or 45 cents per share, up from $4.1 million, or 26 cents per share, a year earlier. The company reported that net revenue jumped 62.4% to $21.4 million, up from $13.2 million a year earlier. A poll of analysts conducted by Thomson Reuters showed an average Wall Street estimate of expected earnings of 40 cents per share, on revenue of $20.59 million. Chairman and chief executive officer Zhentao Gao said, "Our strong third quarter sales growth was driven by an increase in both volume and average selling prices. We are particularly pleased with our gross margin performance which benefited from higher average selling prices and our ability to optimize our input costs by locking in favorable fixed prices for external eggs when the market was not as strong as it is today. Yuhe's management team, based on its many years of experience and industry expertise, correctly forecast the current supply shortage and took action to capitalize on the opportunity. As a result, we are benefiting from a situation where average selling prices are rising at a faster rate than our input costs. The current average selling price of day-old-broilers is approximately RMB 3.4 and we expect this favorable supply/demand imbalance to persist into at least the first half of next year." Yuhe International, Inc. (YUII) ended the previous trading session at $10.41 per share. Analysts covering the company's stock have a consensus price target of $15.50 per share. Read more from Benzinga's Company news.