51job Q2 Profit Down, Shares Tank 11% - Update

(RTTNews) - 51job Inc. (JOBS), a China-based recruiting services provider, Monday reported a plunge in profit for the second quarter, despite a 13 percent growth in revenues, hurt largely by higher operating costs and other special charges. Shares of the company tanked 11 percent in the after-hours trade, following the news.

Shanghai, China-based 51 Jobs' second-quarter profit dropped to 52.0 million yuan or 1.72 yuan per ADS from 119.2 million yuan or 3.98 yuan per ADS last year. On a US dollar basis, profit for the quarter was $8.4 million or $0.28 per ADS.

Adjusted earnings for the quarter was 165.8 million yuan or 5.50 per ADS, up from 136.4 million yuan or 4.56 yuan per ADS last year. On a US dollar basis, adjusted earnings were $26.7 million or $0.89 per share.

Analysts polled by Thomson Reuters expected earnings of $0.32 per share for the quarter. Analysts' estimates typically exclude one-time items.

Results for the quarter quarter included senior notes issuance costs of 47.2 million yuan, change in fair value of convertible notes of 28.9 million yuan and change in fair value of zero-strike call options of 24.9 million yuan.

Total operating costs for the quarter increased to 203.4 million yuan from 160.6 million yuan last year.

51 Jobs said revenues for the second quarter grew 13.1 percent to 457.5 million yuan from 404.4 million yuan last year. On a US dollar basis, revenues were $73.8 million. Analysts had a consensus revenue estimate of $72.33 million for the quarter.

Online recruitment services revenues increased 15.8 percent, driven largely by increase in number of unique employers, while print advertising revenues decreased 78.8 percent as the company diverts away from print business.

Gross margin for the quarter improved to 73.9 percent from 73.7 percent last year.

Looking forward to the third quarter, the company forecasts adjusted earnings of 2.25 to 2.45 yuan per share and revenue of 455 million to 470 million yuan.

JOBS closed Monday's trading at $38.25, up $1.82 or 5.00%, on the Nasdaq. The stock, however, plunged $4.25 or 11.11%, on the NYSE.