51job Inc. (NASDAQ: JOBS) has confirmed that it will release its Q2 2021 earnings results on Monday, September 6, 2021.
What to expect
The company is expected to post exceptional results with revenue growth continuing Q1 2021 momentum. 51Jobs expects online recruitment service revenue to contribute to the improved revenue during the quarter, considering hiring activity and market conditions have improved in 2021. In addition, robust training demand, placemen, and business process outsourcing will act as a tailwind for other human resources associated revenues.
Earnings: Stockearning’s Estimated EPS for the second quarter is $0.47. Historical EPS Performance in the last 12 quarters has seen the company beat estimates five times (41%) and miss earnings estimates on two occasions (16%). In the first quarter, the company missed earnings estimates of $0.43, with the company posting an EPS of $0.23.
Revenue: In the first quarter, the company announced net revenue of RMB895.2 ($136.6 million), a 13.2% YoY increase. The increase was attributed to other human resources revenue that increased 43.3%, partially offset by inline recruitment revenue that dropped 0.3%. The company reported a net income of RMB57.2 million ($8.7 million) or fully diluted earnings of RMB0.84 ($0.13) per share.
Historical Price Reaction into Earnings: Since the last earnings release date, the stock has lost 1.4%. Previously the stock price has been DOWN 25 times after earnings release in the past 46 quarters. So, the historical price reaction suggests that the probability of the stock dropping after earnings release is 55%. According to the Stockearnings algorithm, the predicted first-day move on the stock after earnings release is 5%, while the predicted seventh-day move is 6% following the earnings release.
What analysts are saying
Recently Citi analyst Alicia Yap downgraded the company’s stock from “Buy” to “Hold” with a price target of $81. The company announced on June 21 the signing of a definitive agreement and merger plan through which a consortium of investors will acquire the company in cash consideration of $79.05 per ADS> Yap noted at the time that the closing price of $78 was 4% less than the price target of $81 and less than 3% for the stock’s privatization price.
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