Charles & Colvard Ltd (CTHR) got here out with quarterly earnings of $0.03 per share, beating the Zacks Consensus Estimate of $0.01 per share. This compares to lack of $0.03 per share a 12 months in the past. These figures are adjusted for non-recurring objects.
This quarterly report represents an earnings shock of 200%. 1 / 4 in the past, it was anticipated that this firm would put up earnings of $0.03 per share when it truly produced earnings of $0.09, delivering a shock of 200%.
Over the past 4 quarters, the corporate has surpassed consensus EPS estimates 4 occasions.
Charles & Colvard Ltd, which belongs to the Zacks Treasured Metals and Jewels business, posted revenues of $9.44 million for the quarter ended March 2021, surpassing the Zacks Consensus Estimate by 19.44%. This compares to year-ago revenues of $6.49 million. The corporate has topped consensus income estimates 4 occasions during the last 4 quarters.
The sustainability of the inventory’s rapid worth motion primarily based on the recently-released numbers and future earnings expectations will largely rely upon administration’s commentary on the earnings name.
Charles & Colvard Ltd shares have added about 174% because the starting of the 12 months versus the S&P 500’s achieve of 11%.
What’s Subsequent for Charles & Colvard Ltd?
Whereas Charles & Colvard Ltd has outperformed the market thus far this 12 months, the query that involves traders’ minds is: what’s subsequent for the inventory?
There aren’t any straightforward solutions to this key query, however one dependable measure that may assist traders deal with that is the corporate’s earnings outlook. Not solely does this embody present consensus earnings expectations for the approaching quarter(s), but in addition how these expectations have modified these days.
Empirical analysis reveals a powerful correlation between near-term inventory actions and tendencies in earnings estimate revisions. Traders can observe such revisions by themselves or depend on a tried-and-tested ranking software just like the Zacks Rank, which has a formidable observe report of harnessing the facility of earnings estimate revisions.
Forward of this earnings launch, the estimate revisions pattern for Charles & Colvard Ltd was combined. Whereas the magnitude and course of estimate revisions might change following the corporate’s just-released earnings report, the present standing interprets right into a Zacks Rank #3 (Maintain) for the inventory. So, the shares are anticipated to carry out in keeping with the market within the close to future. You possibly can see the whole checklist of immediately’s Zacks #1 Rank (Sturdy Purchase) shares right here.
It will likely be attention-grabbing to see how estimates for the approaching quarters and present fiscal 12 months change within the days forward. The present consensus EPS estimate is breakeven on $6.5 million in revenues for the approaching quarter and $0.12 on $34.four million in revenues for the present fiscal 12 months.
Traders needs to be aware of the truth that the outlook for the business can have a fabric impression on the efficiency of the inventory as properly. When it comes to the Zacks Trade Rank, Treasured Metals and Jewels is presently within the high 47% of the 250 plus Zacks industries. Our analysis reveals that the highest 50% of the Zacks-ranked industries outperform the underside 50% by an element of greater than 2 to 1.
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Charles & Colvard Ltd (CTHR): Free Inventory Evaluation Report
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The views and opinions expressed herein are the views and opinions of the writer and don’t essentially replicate these of Nasdaq, Inc.