Motley Fool
0
All posts from Motley Fool
Motley Fool in Motley Fool,

Why 51job, Inc. (ADR) Stock Jumped Today

What happened

Shares of Chinese online recruiter 51job, Inc. (ADR) (NASDAQ: JOBS) were surging today after the company posted strong second-quarter results. As of 10:53 a.m. EDT, the stock was up 8.3%.

Image source: Getty Images.

So what

It was a strong quarter for the human-resources specialist across the board, as 51job said revenue increased 20.3%, to $99.3 million, which beat expectations at $94.2 million. Gross margin ticked up 140 basis points, to 73.2%, and operating income jumped 46.8%, to $27.7 million. Adjusted earnings per share improved from $0.43 a year ago to $0.49, topping the consensus at $0.46.

CEO Rick Yan called the results "solid" and touted "robust acquisition of new users."

Now what

Looking ahead, the company said it expected revenue of $101 million-$104 million in the current quarter, better than analyst estimates at $98.6 million. On the bottom line, it projected $0.46-$0.49 in earnings per share, which was also above expectations at $0.44.

After a quarter like that, it's easy to see why the stock is climbing today. As the Chinese economy and labor market continue to explode, 51job is likely to gain with it.

10 stocks we like better than 51job
When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*

David and Tom just revealed what they believe are the 10 best stocks for investors to buy right now... and 51job wasn't one of them! That's right -- they think these 10 stocks are even better buys.

Click here to learn about these picks!

*Stock Advisor returns as of August 1, 2017

Jeremy Bowman has no position in any stocks mentioned. The Motley Fool recommends 51job. The Motley Fool has a disclosure policy.