One thing I don't understand is XIN only raised its full year outlook of net income by $5 million while its Q2 2013 net income itself beats the previous guidance by $14 million. Does XIN want to say the second half net income will be worse than last quarter's outlook? I don't find the message from anywhere else of the earning release.
If XIN just tries to low ball the outlook for it to beat by at least 40% next time, it is an insult of investor's intelligence. This is something I really don't like about this company. They could do a much better job on the outlook forecast.
Too lazy to check your numbers today, but if what you say is true, perhaps it's impossible to underestimate investor intelligence. How long can a CFO of a grossly underpriced stock watch other issues soar after simply beating expectations? XIN buys back shares and issues a hefty dividend to no avail. If Beat-the-Numbers is the game that Wall Street stupidly plays, why not play too for the benefit of XIN shareholders? I hope that this foolish explanation is wrong, but if not, I won't be scandalized by XIN management's decision.
The truth is only beating the estimates is not the route to higher share prices. It all depends on the market's own estimates. XIN mentioned it beats previous guidance by 40% more. At the end, it only pushed the stock up in the premarket. When major money started changing hands, the rally is fading, meaning the market doesn't think it is a big beat. Also, the full year 2013 guidance is a complete joke. I cannot believe a CFO or anybody in executives in XIN did not realize how stupid the raised outlook is. How could shareholders believe XIN has strong internal controls?