Company Description
American Dairy operates in China under the umbrella of its parent company Feihe Dairy. The company specializes in producing milk powder and soybean products and has a market cap of $729 million.
First-Quarter Results
American Dairy's share price has been on fire since the company reported gang-buster first-quarter results on May 14 that were ahead of expectations.
Sales were up 191% from last year to $113.8 million. Income was up 282% to $27.8 million, producing earnings of $1.55 per share.
CEO Leng You-Bin said that the company's results were boosted by the melamine crisis in China, pushing consumer towards its products. Mr. You-Bin went on to say that he expects the company's long-term growth rates to return to a normal level in coming quarters.
Estimates Spike
After the solid quarter, analysts raised their earnings forecasts, with the current-year estimate more than doubling to $3.34 per share. The next-year estimate is up to $4.49, a 34% growth projection.
The Chart
Shares of ADY have been rallying since news of the great quarter hit the Street, advancing from $17 to a recent high above $43. Take a look at the big move in the chart below.

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| Market Summary | Nov 24, 2009 14:02 pm ET |

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