Gulf Resources Beats; Reaffirms Guidance (GFRE)

Gulf Resources, Inc. GFRE reports Q2 EPS of $0.47 versus estimates of $0.34. Gulf Resources, Inc. reports revenues of $46.8 million versus estimates of $37.5 million. Revenues increased 58% year over year. For the second half of the year, Gulf Resources plans to increase research and development activities in end-user markets for bromine and is assessing technologies as well as acquisition opportunities that increase its competitiveness in downstream industries. The company reiterates guidance for revenue between $146 million and $150 million and net income between $44 million and $46 million for fiscal year 2010. "We are pleased to report another strong quarter with solid double-digit growth in both the top and bottom line. Our strong financial performance in the second quarter was mainly due to the positive pricing environment for bromine. For the three months ended June 30, 2010, our average selling price for bromine was $2,801 per tonne, an increase of 67.8% from the corresponding quarter last year," said Xiaobin Liu, the Chief Executive Officer of Gulf Resources. He added, "During the quarter, we continued making progress with our growth strategy by closing our eighth acquisition of bromine and crude salt production assets. We also achieved a milestone in the integration of our two business subsidiaries through the commercialization of bromine-based chemical products as we began trial production of wastewater treatment chemical additives earlier than originally planned."