Kandi Technologies (KNDI) reported strong earnings results this morning with an EPS of .04/share on revenues of $8.25 million. That’s a big improvement over the year ago quarter in which the company reported a loss of .03/share on revenues of $4 million, but no so impressive when you compare it sequentially. The company had been reporting accelerating revenue growth with $4 million, $5.5, $9.6 and $14.7 million over the last 4 quarters, so the $8.25 million this quarter no longer seems so impressive.
The future growth of this company really depends on the success of its COCO electric vehicle for which it recently received approval. Currently, it’s a go-kart and ATV business and while the go-kart business is doing very well with 44% growth last quarter, the future depends on its EV growth.
CEO Xiaoming Hu commented on the quarter:
The continuing recovery in the world economy as 2010 began, coupled with our efforts to expand the geographic reach of our vehicles helped us achieve strong gains in first quarter sales, led by a sharp increase in sales of our go-karts. Sales also were up in the quarter for our COCO EV. As the year progresses, our goal is to begin to expand domestic sales in China based on the landmark approval we received from the government on April 30, 2010, and when our Alliance plans in Jinhua City advance further.
Shares of KNDI are flat today and trying to hold key support of the 200-day moving average around the $4 level.
Disclosure: No positions
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