Wonder Auto Tech, Inc. (WATG) has rallied with the market for the last 2 months, with its share price jumping from just over $2 in early March to a recent high above $7.

Company Description

Wonder Auto Technology, Inc., through its subsidiaries, engages in the design, development and manufacture automotive electrical parts in China. The company operates out of China and has a market cap of $207 million.

First-Quarter Results

Wonder Auto’s stepped up and reported strong first-quarter results on May 4 that were ahead of expectations. Revenue was up 28.5% from last year to $40 million. Income was up 29.8% to $10.1 million, producing earnings of 19 cents per share, 4 cents ahead of the consensus.

Consistent Results

This was the fourth time in the last 4 quarters that the company has surprised and beat estimates, having done so by an average of 3 cents, or 16%.

AFter the solid quarter, analysts raised their earnings projections. The current-year estimate is up 6 cents in the last 30 days to 82 cents per share. The next-year estimate is also up 6 cents to 97 cents, an 18% earnings growth projection.

The Chart

Shares of WATG have been rallying since early March after bottoming out just above $2. Since then, shares have crossed the $7 mark. Take a look below.

Zacks Investment Research

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