China Automotive Systems Reports 8% Topline Growth In Q2; Reiterates 2023 Revenue Guidance

China Automotive Systems Inc CAAS reported second-quarter FY23 sales growth of 8.1% year-on-year to $137.41 million, missing the analyst consensus of $140.72 million.

The gross profit margin compressed by 140 basis points Y/Y to 16.5%, and the gross profit remained flat at $22.7 million.

The operating income for the quarter was $7.8 million, with an operating margin of 6%.

The company held $125.54 million in cash and equivalents as of June 30, 2023.

The company reported an EPS of $0.35, compared to $0.31 last year.

Outlook: China Automotive Systems reiterated its revenue guidance for the full year 2023 of $560.0 million, below the consensus of $566.7 million.

Price Action: CAAS shares are trading higher by 5.11% at $5.55 in premarket Friday.