Shares of 51job Inc. (ADR) (NASDAQ: JOBS) rallied in trading today on better-than-expected sales forecast for the third quarter. The China-based recruiting service provider also reported better-than-expected profit for the second quarter.
JOBS shares rose to an intra-day high of $44.39 in trading before finishing the day 20.31% higher at $43.84 on above average volume of 378,600.
JOBS reported adjusted net income of $0.66 per ADS for the second quarter, beating Street estimates. The company‚Äôs revenue for the second quarter of 2012 was $56.7 million, representing an increase of 8.4% over the same period in the previous year.
Online recruitment services revenue for the quarter was $37.1 million, representing an increase of 17.6% over the same period in the previous year. Print advertising revenue for the quarter was $3.5 million, down 57.3% over the same period in the previous year. The decline in print advertising revenue for the quarter was mainly due to the ongoing shift in secular demand away from print advertising services.
Gross profit for the second quarter of 2012 rose 10.7% to $39.5 million.
Looking ahead to the third quarter, 51job expects adjusted earnings to come in between $0.61 per ADS and $0.66 per ADS. Total revenue for the third quarter is expected to be between $55.9 million and $58.2 million.
CEO Rick Yan said that amid increased uncertainty in China, JOBS observed softer market demand for its recruitment services in the second quarter. Despite these stronger headwinds, the company moved ahead in executing its key initiatives, adding new corporate customers and extending sales coverage, Yan said.
Yan added that the company is pleased that the continued, rising contribution of its other HR services area offset some of the recruitment demand volatility. He added that while employers remain cautious about hiring, the company will focus its efforts on product development and service efficiency to strengthen its market position and fundamentals for sustainable, long-term growth.