E-House Results Top Estimate, Lifts FY Guidance; Stock Up - Update

(RTTNews) - Real estate services provider E-House (China) Holdings Ltd (EJ), Tuesday reported a better-than-expected profit for the first quarter, helped by a forty percent jump in revenues. The company lifted its revenue outlook for 2014, sending its shares surging 14 percent in morning trade on the New York Stock Exchange.

Results for the quarter were led by robust growth at the real estate online services and real estate information and consulting services businesses, the company said.

CEO Xin Zhou said the recent quarter showed softness in certain cities of China's real estate market and expects the trend to continue for some time this year. However, E-House's major business segments continued to grow due to strong execution, market penetration and product innovation, Zhou added.

Shanghai, China-based E-House posted first-quarter net income to shareholders of $2.9 million or $0.02 per American Depositary Share, or ADS. This compares with a loss of $5.4 million or $0.05 per ADS last year.

Excluding items, adjusted earnings for the quarter were $11.9 million or $0.08 per ADS, compared with $4.2 million or $0.03 per ADS a year ago.

On average, three analysts polled by Thomson Reuters expected earnings of $0.04 per share for the quarter. Analysts' estimates typically exclude special items.

Revenues for the quarter surged 40 percent to $163.3 million from $116.6 million in the prior year. Analysts expected revenues of $138.7 million for the quarter.

For fiscal year 2014, E-House expects revenue of $910 million to $930 million, up from its prior guidance of $880 million to $900 million. Analysts currently expect revenues of $892.6 million for the year.

Last month, E-House's subsidiary, Leju Holdings Ltd (LEJU), an online-to-offline real estate services provider in China, listed its shares on the New York Stock Exchange in an initial public offering. E-House holds a 75.5 percent stake in Leju.

E-House stock is trading at $9.32, up $1.14 or 13.94%, on a volume of 1.5 million shares.