3 Stocks Advance on Monday

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- By Omar Venerio

Shares of Huami Corp. (HMI) jumped more than 7% after the company reported second-quarter earnings of 6 cents per share on $114.9 million in revenue, reflecting a 54.8% year-over-year growth. The company fell short of earnings estimates by 5 cents and revenue expectations by $18.02 million.

The gross profit increased to 196.9 million yuan ($29.8 million) from 127 millio n yuan in the prior-year quarter, a 55.0% increase. The gross margin was 25.9%.


During the fi rst s ix m onths of 2018 , r evenues increased 63.7% to 1,346.1 million yuan from 822.2 million yuan , driven by an increase in shipment volume of both Xiaomi wearable products and self-branded products.

The gross profit increased 70.9% to 343.6 million yuan. The gross margin increased to 25.5% from 24.4%. The increase was driven by improved economies of scale and the rapid growth in sales of self-branded products.

Looking ahead to the third quarter, the company expects n et revenues in the range of 820 million yuan to 840 million yuan.

Shares of Black Box Corp. (BBOX) gained more than 2 % after reporting a first- quarter 2019 loss of 28 cents per share on $ 1 9 0 . 8 m illion in revenue, a 0 . 4 % decline .

The gross profit margin reached 28.2%, up 80 basis points from the prior-year quarter as a result of better margins in North America Services, including both of the commercial and federal businesses, partially offset by margin deterioration in International Services.

"I am satisfied with the quarterly results as we continue to make progress on positioning the company for future profitable growth," President and CEO Joel Trammell said.

Shares of SodaStream International Ltd. (SODA) advanced nearly 10% on news that PepsiCo Inc. (PEP) is buying the company for $144 pe r share.

D isclosure: The author holds no positions in any stocks mentioned .

This article first appeared on GuruFocus.


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