Aisin Seiki Co. Ltd. Unsponsored ADR (ASEKY Quick QuoteASEKY - Free Report) shares rallied 6.1% in the last trading session to close at $39.32. This move can be attributable to notable volume with a higher number of shares being traded than in a typical session. This compares to the stock's 4% loss over the past four weeks.

Stellar fiscal 2021 results of the Japan-based automotive parts supplier pushed the stock price higher. Aisin Corp generated earnings per share of 391.96 yen, which increased from the year-ago period’s 89.28 yen and surpassed the company’s forecast of 222.62 yen. Encouraged by the strong results, it also raised dividend payout per share from 60 yen to 100 yen, which further buoyed investors’ confidence. Moreover, increase in the price targets of Aisin Corp by a couple of investment banks including Credit Suisse, Morgan Stanley and Goldman Sachs have fueled optimism.

Price and Consensus

This company is expected to post quarterly earnings of $0.88 per share in its upcoming report, which represents a year-over-year change of +214.3%. Revenues are expected to be $9.19 billion, up 9.6% from the year-ago quarter.

Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements.

For Aisin Seiki Co. Ltd. Unsponsored ADR, the consensus EPS estimate for the quarter has been revised 17.9% lower over the last 30 days to the current level. And a negative trend in earnings estimate revisions doesn't usually translate into price appreciation. So, make sure to keep an eye on ASEKY going forward to see if this recent jump can turn into more strength down the road.

The stock currently carries a Zacks Rank 3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>