China Advanced Constructn Mtrls Grp Inc. (NASDAQ:CADC)
China Advanced Constructn Mtrls Grp Inc. (NASDAQ:CADC) shares nearly tripled in market value after the holding company reported Q3 financial results that exceeded Wall Street expectations. Revenue for the three months ended September 30, 2017, nearly doubled as net loss dropped by two thirds.
CADC Stock Performance
China Advanced Constructn Mtrls Grp Inc. (NASDAQ:CADC) stock is currently trading at this year’s highs and close to its 52-week high of high of $9.75 a share. The better than expected financial results appear to have strengthened investor confidence in the company, as the stock had been trading in a downtrend.
Over the past one month, the stock has performed along a premium change of 7.5%. For the past three months, the stock is up by more than 13.1%. However, it is down by 6.5% for the past six months.
The stock grabbed analysts’ attention after spiking on unusual volume. More than 19.31 million shares exchanged hands in Thursday’s trading session compared to a 3-month average volume of 0.02 million and a daily average trading volume of 15.5k shares.
China Advanced Constructn Mtrls Grp Inc. (NASDAQ:CADC) conducts its primary business through subsidiaries. The company engages in the production of construction materials for infrastructure, commercial and residential developments.
Government and industry associations have certified the company’s products. It also boasts of a leading position in the large, highly fragmented ready-mix market concrete market.
CADC Q3 Financial Results
For the three months ended September 30, 2017, the construction company reported revenues of $13.8 million, up from revenues of $7.5 million reported in the corresponding period last year. Cost of revenue surged to $12.3 million from $8.41 million. China Advanced Constructn Mtrls Grp Inc. (NASDAQ:CADC) generated a gross profit of $1.4 million compared to $952,412 reported last year.
“Our management believes that we have the ability to capture a greater share of the Beijing market via expanding relationships and networking, signing new contracts, and continually developing market-leading innovative and eco-friendly ready-mix concrete products,” China Advanced Constructn Mtrls Grp Inc. (NASDAQ:CADC) in a statement.
Net loss for the three months ended September came in at $545,590 compared to a net loss of $5.3 million reported last year. China Advanced Construction Materials exited the quarter with cash and cash equivalent of $923,882 compared to $8.2 million as of the same period last year.
China Advanced Constructn Mtrls Grp Inc. (NASDAQ:CADC) has a Return on Assets of -25.40%. Return on Investment currently stands at -20.55 which means its operations costs outweigh returns.
I have no positions in any of the stocks mentioned, and have no plans to initiate any positions within the next 72 hours. All information, including any data, is provided without any guarantees of accuracy.
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About the author: James Marion is a University of Houston student studying Business with a concentration in Finance. James has interned with several investment professionals and hopes to pursue a career as a professional stock analyst after graduation.