China Sky One Medical, Inc. (AMEX:
CSY)
increased its guidance slightly for its second quarter and full-year
2008 financial results. The new 2008 goal is $82 million in revenue, a
slight increase from the original $80 million forecast.
Investors responded very positively to the news, sending China Sky One
$1.70 higher to $15.30, an all-time high and an increase of 13%. It
doesn’t hurt the company’s stock performance that China Sky One
recently moved to the AMEX exchange from the OTC Bulletin Board.
Q2 revenue is now expected to be just $19.5 million, which China Sky
One points out is a 78% increase over the first quarter of 2008. Gross
margins will continue to be in the 78% range. Net income for Q2 is
projected to reach $6.4 million, or $0.43 per share, fully diluted, a
profit margin of almost 33%.
China Sky One attributed the increase to three factors:
• Products from Heilongjiang Tianlong Pharmaceutical, a March
acquisition for China Sky One, enjoyed a strong initial reception;
• Advertising promotions for China Sky One’s external use products
(Slim Patch Body-Beauty Plaster, Hemorrhoid Ointment, Compound Camphor
Cream and Blood Pressure Depress Patches) have stimulated sales;
• The second and third quarters are historically strong for China Sky One.
For all of 2008, China Sky One calls for net income to be about $26.3
million, or $1.76 per fully diluted share. Net margin is expected to be
approximately 32%.
