Chinese information technology services company iSoftStone Holdings Ltd. said Monday that its third-quarter net income more than doubled as revenue grew sharply thanks to strong demand from an expanding client base.
The company earned $5.7 million, or 9 cents per American Depositary share, up from earnings of $2.1 million, or 3 cents per share, in the same period a year earlier.
Adjusted earnings were 15 cents per American Depositary share in the latest quarter, above Wall Street's expectations.
Revenue grew 42 percent to $74.6 million from $52.4 million. Net revenue, which excludes what the company called business tax, was $73.7 million in the latest quarter, up from $51.1 million last year.
Analysts, on average, were expecting earnings of 12 cents per share on revenue of $72.6 million, according to a poll by FactSet.
The company had adjusted prices and its cost structure for project delivery employees to counteract "challenging" cost inflation, said iSoftStone's CEO T.W. Liu.
He also said that the growing Chinese economy would benefit the company, but the global economy was a concern, especially the U.S. and Europe.
About 59 percent of iSoftStone's revenue came from China, Taiwan, Hong Kong and Macau in the latest quarter and roughly a quarter from the U.S.
For the fourth quarter, the company is forecasting adjusted earnings of about 18 cents per American Depositary share on net revenue of $84.4 million to $86.4 million. Analysts are expecting earnings of 15 cents per share on revenue of $82.3 million.
For the full year, iSoftStone expects adjusted earnings of 56 cents to 57 cents per share on net revenue of $282 million to $284 million.
Analysts are expecting earnings of 46 cents per share on revenue of $279.5 million.
Shares of iSoftStone rose 29 cents, or 2.9 percent, to $10.32 in morning trading.