China TransInfo falls on earnings, forecast

/ Source: The Associated Press

Shares of China TransInfo Technology Corp., which makes technology for public transportation systems, fell sharply Friday after the company posted third-quarter earnings that fell short of analysts' estimates and its lowered its full-year earnings forecast citing higher expenses.

Shares of the company fell 50 cents, or 8.6 percent, to $5.31 in afternoon trading.

In the third quarter, which ended Sept. 30, the company's net income rose to $4.3 million, or 17 cents per share, from $4 million, or 18 cents per share, a year ago.

Since the third quarter of 2009, the pool of outstanding common stock has grown to 25.3 million shares from 22.3 million shares, which helps explain why earnings per share dropped even as net income rose.

Analysts had been expecting earnings of 19 cents per share, according to Thomson Reuters.

The company's net sales rose 83 percent to $35 million from $19.2 million in the same period a year earlier.

China TransInfo lowered its 2010 estimated adjusted net income to $16.5 million from $18 million, thanks to a higher-than-expected rise in expenses.

It still expects fiscal 2010 revenue of $120 million. Analysts expect annual revenue of $121 million, according to Thomson Reuters.