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51job Enjoys Strong Growth in First Quarter

CapitalWatch Staff 2018-11-19 14:52 PM
51job Enjoys Strong Growth in First Quarter

Shanghai-based 51job Inc. (Nasdaq: JOBS) reported late Thursday that its revenue jumped more than one-third in the first quarter while operating income grew by more than 40 percent. 

The company, a provider of human resource services in China, said its income from operations increased to $37.6 million from $26.2 million in the year-earlier period. Revenue rose to $129.3 million, up 33.5 percent from $96.9 million a year ago. Both revenue and income beat analysts&`#`39; expectations.

For the three months, however, the company reported a loss attributable to 51job of $53.1 million, or 87 cents per share, in contrast to earnings of $26 million, or 44 cents per share, a year earlier. Net income for the current period was hurt by a non-cash loss of $93.9 million, the company said, as it reflected a change in value of its convertible senior notes, which was driven by the increase in price of its ADSs in the first quarter. 

51job, which closed at $85.48 per share on Thursday, has seen its stock climb more than 40 percent this year.

 

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Shares in 51job have risen more than 40 percent this year. (Source: Thomson Reuters Eikon)

"We carried solid momentum in sales execution and operating efficiency into 2018 throughout the organization, said Rick Yan, the company's president and chief executive officer, in a statement. "Consistent with our high-quality growth strategy, our online business saw further uplift in revenue per customer as we pursued up-selling to existing customers and increased prices on certain entry-level online packages this year." 

Looking ahead, the company said it expected second quarter revenue to reach between $136.3 million and $141.1 million. Non-GAAP fully diluted earnings were projected to 59 cents to 64 cents per share, the company said.