NEW YORK (TheStreet) -- E-House China Holdings (EJ) shares are down 8.5% to $8.72 on Wednesday after the Chinese real estate services provider reported third quarter earnings that missed expectations and lowered its full year guidance.
The company reported third quarter earnings of 9 cents per diluted share, eight cents worse than the 17 cents per diluted share the company was expected to earn during the period.
The company generated $218.7 million in revenue during the quarter, an 11.8% increase over the same period last year, but fell short of analysts $238.19 million expectations. The revenue miss led the company to lower its full year guidance to between $870 million and $890 million from its previous view of between $910 million and $930 million.
TheStreet Ratings team rates E-HOUSE CHINA HOLDINGS -ADR as a Buy with a ratings score of B-. TheStreet Ratings Team has this to say about their recommendation:
"We rate E-HOUSE CHINA HOLDINGS -ADR (EJ) a BUY. This is driven by several positive factors, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures, impressive record of earnings per share growth, compelling growth in net income and expanding profit margins. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- You can view the full analysis from the report here: EJ Ratings Report