Top Performer for Mon: FUQI Int'l (FUQI)
For the second time in 3 weeks, FUQI International, Inc. (FUQI - Snapshot Report) is being featured as the top-performing Zacks #1 Rank stock. Shares of the company are surging by approximately 19% on Monday with extraordinarily high volume of 3.5 million, compared to the daily average of 1.6 million.
FUQI is a leading designer of high quality precious metal jewelry in China, developing, promoting and selling a broad range of products in China's large and expanding Chinese luxury goods market.
Estimates Remain at Heightened Levels
The past month have seen no movement in earnings expectations for FUQI, but the estimates are retaining the boost received after its first-quarter report in May.
Analysts expect $1.64 per share for this year, which is approximately 13% better than the 2-month ago level of $1.45. There are currently 4 analysts covering the company for this period.
Expectations for next year are seen at $1.98, marking an almost 21% year-over-year advance. That estimate has gained by 7.6% over the past 60 days with 3 analysts contributing.
China Loves the Finer Things
Usually, jewelry is not a hot item in the midst of a global recession, which is holding true in the U.S. and Europe. But China looks to be the exception in this case, due to such factors as its growing middle class and the Chinese economic stimulus plan. As a result, FUQI stated in its first-quarter press release that the jewelry market in China has been "somewhat resistant" to the effects of the economic downturn.
FUQI has beaten quarterly profit estimates in each of the last 4 quarters by an average of 28%.
Most recently, the company earned 45 cents per share in the first quarter, accounting for a more than 32% surprise over the consensus estimate of 34 cents. In the year-ago quarter, earnings reached 31 cents per share.
Revenues jumped 41% year over year to $109.4 million from $77.6 million, attributed to an increase of sales volume in the wholesale business and increased revenues from the retail business.
The company now expects earnings per share between $1.49 and $1.63 for the full year on revenue of $442 million to $465 million.
FUQI Nearly Alone
As you would expect, the precious metals/jewelry industry is not very well-represented on today's 221-stock Zacks #1 Rank List. However, FUQI is not the only company from that space on the list, as Fossil Inc. (FOSL - Snapshot Report) has fought the difficult environment to be included.