Wonder Auto Technology, Inc. (fka WATG)

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WATG news is good

Wonder Auto's 3rd-quarter net income rises

Parts maker Wonder Auto's 3rd-qtr net income rises, helped by more orders, higher demand


NEW YORK (AP) -- Chinese auto parts maker Wonder Auto Technology Inc. said Tuesday that its third-quarter net income rose 72.6 percent as revenue surged due to strong demand both inside and outside of China.

The company raised its guidance for the year, but shares fell after Wonder Auto's more than 7 percent gain on Monday.

The company said it earned $11.9 million, or 35 cents per share, in the three-month period ending Sept. 30. Last year during the same period the company earned $6.9 million or 24 cents per share.

Analysts expected the company to earn 23 cents per share on revenue of $73.8 million, according to Thomson Reuters.

Revenue rose 33.7 percent to $78.8 million.

China is the biggest auto market by number of vehicles sold, and its auto industry rebounded from the recession quicker than the industry in U.S. did. But growth has fallen since last year, when Beijing boosted demand with tax cuts and subsidies.

The company said its revenue from China rose 34.8 percent to $52.7 million and from outside China 24.5 percent to $7.9 million.

The company raised its guidance for the full year and now expects net income of $37.5 million, up from $36 million, and revenue of $307 million, up from $300 million.

Shares closed up 6.5 percent on Monday to $11.30. On Tuesday, though, shares moderated and dropped 92 cents, or 8 percent, to $10.38 in late morning trading.